Here's a trade that might make sense. Circle back to the best cloud computing plays out there, the ones that delivered excellent quarters and yet got no recognition for doing so: Concur (CNQR), Workday (WDAY), Tableau (DATA), Red Hat (RHT) and ServiceNow (NOW).
These stocks began their long descent down when Salesforce.com (CRM) reported at the end of February and it was viewed as disappointing, even when it was pretty much textbook Salesforce beat and raise material.
This time Salesforce beat and raised, but also had a pretty dramatic acceleration in revenue growth. As Marc Benioff said on "Mad Money" last night, the quarter had "Arrrrr," mimicking my way of sounding like a pirate as I praise a company.
Initially the traders didn't know which way to go and the stock traded down, a misread of both the moment -- as we are now embracing stocks that have been left back from the rally -- and of the accelerating revenue growth that tends to get stocks going.
But when they saw things shift and Salesforce break out of a range that trapped it at unchanged for the year, they piled on and you have the nascent rally we are seeing.
Remember, Salesforce.com had particularly excellent numbers from Europe -- Benioff lived there for a month during the quarter -- despite Russia-Ukraine turmoil, so that risk is off the table in that case.
Why the others? Because there are certain algorithms that kick in when one of these stocks goes up and this one, on a market-cap basis, is the leader of the pack. Remember it is a small, tight-knit group and it will go higher in this environment.