The Selloff Seems Artificial

 | Feb 28, 2014 | 3:36 PM EST
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Stock quotes in this article:

crm

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wday

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zu

They are clubbing the cloud and the buyers seem to have walked away entirely. Ironically it looks like everyone who had been short finished covering.

The selloff's rather breathtaking as it seems so easy. The buyers of Workday (WDAY), zulily (ZU), Salesforce.com (CRM) and so many others look like they have taken stocks up as much as they can and have now walked away. Or perhaps the shorts that I alluded to earlier seemed to have finished their covering and there's a total vacuum, one that is being filed by rumors that the Russians are up to something this weekend in Ukraine.

To me this selloff seems as artificial as the variation way the buyers took these stocks up. It is as if we were marked up yesterday and earlier today and the markups are now done. I think we've now overdone the markdown, unless there's something huge that happens in Ukraine this weekend.

That means that, as I said this morning, if you want to own Salesforce.com you are getting your chance. I reiterate that the biggest issue going into the quarter was that the stock was already up 20% so no encore was possible.

But this rollback, which is emblematic of moves throughout the Nasdaq, I think need to be bought, or at least get started buying if you don't own one of these stocks.

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