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Fading Trades ; VMW and CRM

|Includes: CRM, VMware, Inc. (VMW)

A couple of days ago both VMW  ( ) 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 underperformed the SP500 by around 3% in the following days. So what this trade involves is having the stocks in the back of your mind due to previous research so as to have the courage to make a judgment call when "extreme" moves occur ; that the move was not based on any or strong enough news and will have a good probability of exhibiting mean reversion.

Disclosure: no positions in vmw , crm or sp500 .