CRM has just begun to go down through the large gap that happened upon the beginning of the Feb. report.
CRM's stock price has just begun to fill in the gap, as the ask price for CRM shot up about a dozen points as soon as the quarterly figures were released. There was no time for anyone to read the details or barely even read the revenue number before the stock was trading up about a dozen points. There hasn't been trading throughout that gap and IMHO there will be. IMHO there's continuing downward moves after filling that gap to the downside, but that downward part won't even start until after CRM's has dropped about another 10 points. This is only the beginning of the reversing stock price for CRM, IMHO.
Stay away from long S & P funds. (I'm neither long nor short S & P indices though I have traded them in the past) , but Funds needed to balance late this afternoon and CRM was supported at the end of the day if they added more shares since op-ex day in December. IMHO that's the only reason CRM closed above its low of the day (though the support didn't do much and was likely countered by selling). I didn't add to my shorted shares at the end of the day simply because I'm comfortable with the shorted shares I have over the weekend, but may add to that short position next week.
At what point will employees who are paid in stock get concerned over the lower prices they claim when they sell the stock they're receiving at stockholder expense?
It was options expiration so I am not sure how much that plays into it, however in 2 of 3 scenarios it does not play out well for longs in the bloated pigs such as CRM, AMZN and NFLX.
First off you are right about the gap. It has now started to fill but needs to get down to $169.22 to fill to the close on the joke earnings hype for in line revenues and guidance and negative GAAP earnings.
The 3 scenarios as I see them are (with a bonus one added):
1. Greater fool stocks keep getting bought and party like it's 1999.
2. Rotation which appears to have started Thursday (with the AAPL upgrade and the first Sell side Rat downgrading AMZN), continues from Momo IBD greater fool stocks to high quality value growth like AAPL.
3. The market corrects.
4. I'll add a 4th scenario as a bonus, Both 2 and 3 occur at the same.
Now I can't put odds on each of the above but if I were betting long on the earningsless companies I would not be sleeping too well. You might want to talk to some of your frenemies this weekend and talk them into being greater fools up here. :-)