This article originally appeared Jan. 27, 2014, on Real Money. To read more content like this, + see inside Jim Cramer's multi-million dollar portfolio for FREE -- Click Here NOW.
You do not get an up opening as we just had without people coming out of the woodwork to sell, especially when there are so many rumors about weakness in the social and mobile world -- namely Facebook ( FB), Twitter ( TWTR) and Google ( GOOG).
I find this raid-like scenario typical of what happens when people feel we are safe after a very big decline. Lots of damage was done to various charts, and there was lots of rumor-mongering today, and, of course, lots of panic selling, because the up opening was as unsustainable as any I can recall.
Let me go further. The high-multiple highfliers turn out to be far more vulnerable than their growth devotees thought, and they more likely have to give up their gains for the year before they find even footing. Please remember that the Nasdaq has had a tremendous run, and the selloff is reasonable and will remain reasonable as long as the momentum speculators are scared and running.
It is never too late to sell a high-multiple stock if you are only in it for momentum.
It's a little silly if you were in it for something fundamental.
Anyway, it's way too early to call a bottom on the stuff that didn't come down last week. The values are in the stocks that are bond-market equivalents and softer goods that have reported good numbers.