Jim Cramer is right: Salesforce is a 'cloud king.'

The big cloud players have little exposure to China. One name in particular stands out to me as a beacon of consistent performance. Every time, this name gets caught in a larger ETF-related puke-athon, investors seem to snatch these shares up -- on each and every dip. I give you  Action Alerts Plus holding Salesforce.com  (CRM) . 

Note, while all of this talk of a trade war has been going on, this name has had a steadily higher trajectory. Notice the consistency in relative strength coupled with the similar consistency of the money flow. The daily Moving Average Convergence Divergence looks suddenly positive as well, though that will be at risk this morning. Do I continue to like CRM regardless of the news flow? Indeed. You saw the note that Goldman Sachs (GS) put out covering IT spending earlier this week, no?

I also think investors can take advantage of any weakness in share prices for Amazon (AMZN) , and Microsoft (MSFT) . I still trust the ability of Adobe (ADBE) to show growth, though that name is currently challenged from a technical perspective. Where I would be careful, and I am long the name, might be in Alphabet (GOOGL) . This is a name that I think risks becoming a political football in Europe. We all know about the potentially large fine that the firm could be facing, we just don't know how political in nature it might be. (GS, AMZN, MSFT and GOOGL are all holdings of Action Alerts Plus.)

Inside the Trade: Salesforce.com

  • Target Price: $152 (up from $145)
  • Panic Point: $132 (up from $120)

Note: It is impossible for me to guess on options premiums, as I write this many hours before the opening bell. Just keep in mind that earnings for this name are due on August 28. Last night, Aug 17 135 puts paid $1.57, while the 130 puts (same expiry) paid $0.87. I find it likely that more than that will be paid for these items this morning. I cannot tell you to make this sale, but I will be looking the opportunity over myself.

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At the time of publication, Guilfoyle was long AMZN, ADBE, CRM, GOOGL, MSFT equity. Short ADBE put options.

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