A couple of days ago both $VMW ( http://jpotrading.blogspot.com/2010/05/is-vmw-bubbly.html ) and $CRM had gone into my radar due to their outperformance of the market.. Then on the 3rd of June both went up more than 7% against the market. The only reasons I could ascertain to cause this were UBS lifting the price target from $64 to $75 and especially comments by Microsoft´s CEO Steve Balmer including $VMW among its four main competitors.( vmware-now-on-microsofts-enemies-list-ubs-ups-estimates) . $CRM went up supposedly due to it also being in this cloud computing business.
I went short both stocks against the SP500, and both underformed the SP500 by around 3% in the following days. So what this trade involved was having the stocks in the back of your mind due to previous research so as to have the courage to make a judgement call when "extreme" moves occur; that it was not based on any or strong enough news and will have a good probability exhibiting of mean reversion.
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