Salesforce $CRM is one of the most popular tech stocks right now.
It's made a lot of people A LOT of money.
But we're short $CRM at @MacroOps.
Is it because we're masochists that love the pain? Not quite.
Our four reasons why we're short $CRM 🙃↘️
macro-ops.com/its-time-to-sh…
It's made a lot of people A LOT of money.
But we're short $CRM at @MacroOps.
Is it because we're masochists that love the pain? Not quite.
Our four reasons why we're short $CRM 🙃↘️
macro-ops.com/its-time-to-sh…
1/ Moving Averages, P/S Ratio and Revenue Growth
- $CRM is coming off a near-record high gap between its price and 200-day moving average.
- It recently put in its second-highest price-to-sales ratio of 13x
- Plus its revenue growth is declining to its slowest on record
- $CRM is coming off a near-record high gap between its price and 200-day moving average.
- It recently put in its second-highest price-to-sales ratio of 13x
- Plus its revenue growth is declining to its slowest on record
2/ Lack of Short Interest
Shorts gave up a LOONNNNGGG time ago (and good on them). They avoided getting their faces ripped off.
Now, Short Interest as % of float hovers around all-time lows.
Shorts gave up a LOONNNNGGG time ago (and good on them). They avoided getting their faces ripped off.
Now, Short Interest as % of float hovers around all-time lows.
3/ Can't Find A Bear On Wall Street
Everyone's bullish on $CRM. That doesn't mean we're right simply because we're taking the other side!!
Just something to note as the bull trade is overcrowded.
~90% of WS Analysts have a Buy/Strong Buy rating on the stock.
Everyone's bullish on $CRM. That doesn't mean we're right simply because we're taking the other side!!
Just something to note as the bull trade is overcrowded.
~90% of WS Analysts have a Buy/Strong Buy rating on the stock.
4/ Major Technical Bull Trap In Place
Last week the stock closed below the upper level of its 3-year broadening top pattern, suggesting the stock has put in a major bull trap.
Last week the stock closed below the upper level of its 3-year broadening top pattern, suggesting the stock has put in a major bull trap.
5/ Concluding Thoughts
While we remain VERY short $CRM we're cognizant of the market we're in and the momentum factors at play.
We're playing it close with aggressive risk management and will be quick to exit the trade should it reverse strongly against us.
Godspeed, shorts.
While we remain VERY short $CRM we're cognizant of the market we're in and the momentum factors at play.
We're playing it close with aggressive risk management and will be quick to exit the trade should it reverse strongly against us.
Godspeed, shorts.
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