Soon, when CRM dips, it will break under the rising 50 day MA. CRM dropped below support a few weeks ago when accounting issues hit the news, but strength in the market propped up the stock the rest of last month. I won't try to predict whether CRM will break below support tomorrow, Thursday, Friday, or next week, but IMHO CRM will break down ahead of it's non-earnings report.
I don't see that CRM broke below the 50 day moving average, but it's getting pretty close here. Any break below about 167 could be telling. I'm thinking that CRM will have to be more conservative with their accounting this time around as they are on SEC watch for their means of determining what their non-GAAP earnings are.
I have heard ( finally) a viable argument on why CRM is not profitable yet. Not sure I believe it will make them profitable, but it is a reasonable argument. With that said, when you look at other financial indicators, like the price compared to their revenues, the stock is way overpriced. Like 2 or 3 times overpriced.... I have said that I might be missing something here, but I don't think so.
I agree. However, for the very short term, I closed out my March puts profitably a couple of hours ago and just now I closed out my February puts. That's just because this stock could go up before it goes down. It will go down. I'm holding my shorted shares. and I will get back into puts, though likely not today and possibly not even this week.