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The second trading day in May was an interesting one indeed and might go down as a significant inflection point. The silver bubble continued to unravel as the poor man’s gold plunged. There was also more divergence in the market that I recall seeing in quite some time. Utilities, Health Care, other defensive sectors and blue chips did quite well in a market that was down overall.

On the other hand, the high beta momentum stocks that have driven the market higher (AKA, Cramer favorites) took a serious pasting. The four Cramer stocks I profiled in an article on equities I thought were severely overvalued posted sizable losses Tuesday.

Salesforce (CRM) – Flat since the article ran on April 19th after being down around 2% Tuesday. Selling at over 100 times earnings and just under 11 times revenues, this equity still looks like it has quite a way to go before reaching any sort of reasonable valuation.

OpenTable (OPEN) – Down almost 8% Tuesday, leaving it down a little over 2.5% since April 19th. At over 25 times sales and almost 100 times earnings, this stock also has farther to fall. Given its disappointing revenues in its quarterly report after the bell Tuesday, it might have significant pullback today.

Lululemon (LULU) – Down over 3% Tuesday and the same amount since the article ran. I still consider this an overpriced retailer selling at over 45 times earnings and 9 times revenues. It is also very vulnerable to rising gas prices in my opinion.

Deckers Outdoor (DECK) – DECK was down less than 1% Tuesday, but over 10% since April 19th. Deckers is selling at 18 time earnings and 3 times revenues. This was my least favorite short idea at time of the original article. After a 10% loss, my opinion of DECK is now neutral.

**The S&P 500 is up 4.5% since the article ran**

Source: 4 Cramer Favorites Take Significant Hits