Author 1 Name: Robin Dowell Org: University of Colorado Country: United States Email: robin.dowell@colorado.edu Author 2 Name: Timothy Danford Org: MIT Country: United States Email: tdanford@gmail.com Author 3 Name: David Gifford Org: MIT Country: United States Email: dkg@mit.edu Machine learning techniques such as segmentation, labeling, and clustering have proven invaluable in computational biology. I will describe STEREO, an algorithm for discovering cis-regulatory RNA interactions by assemblying complete and potentially overlapping same-strand RNA transcripts from tiling expression data. STEREO first identifies coherent segments of transcription using a segmentation algorithm and then discovers individual transcripts consistent with the observed segments given the intensity and shape constraints by assuming a mixture model. We used STEREO to identify 1446 regions of overlapping transcription in two strains of yeast, including transcripts that comprise a new form of molecular toggle switch that controls gene variegation.