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Get Your Portfolio Out Of The Clouds

Cloud computing stocks have seen meteoric rises on hype over their "virtualization" technology.

Take a look at F5, Riverbed and a few of the other names you hear on Fast Money almost every day. Over the past 3 months F5 Networks has surged 40% while rival Riverbed is up about 50%. Just check out those charts.

Is it time to cash out of cloud stocks? Or are these still the early innings?

I’m a big believer in the cloud story (long term) says, Scott Raynovich, editor of the Rayno Report The issue is that right now these stocks are very frothy and the valuations are getting stretched.

However, these are extremely dangerous stocks to short. Instead I'd suggest the following pairs trades.

Scott Raynovich’s Cloud Pairs Trades
LONG Riverbed Technology
SHORT F5 Networks

Scott Raynovich’s Cloud Pairs Trades
LONG RightNow Technologies
SHORT Salesforce.com




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Trader disclosure: On Sept. 23rd, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Seymour owns (AAPL), (GOOG); Adami owns (AGU), (BTU), (NUE), (C), (GS), (INTC), (MSFT); Adami’s wife works at Merck; Terranova Owns (APA), (AAPL), (ARUN), (BMO), (C), (GS), (IBM), (HES), (JOYG), (XBI), (NBR), (NOV), (OXY), (ORCL), (PEP), (POT), (RSH), (SLB), (SU), (SPLS), (RIG), (UPL), (MA), (VRTS); Grasso owns (ASTM), (BA), (BAC), (C), (CSCO), (JPM), (LPX), (MO), (MOT), (NDAQ), (PFE), (PRST); Boockvar owns (PEP), (NKE)

For Anthony Scaramucci
Scaramucci and Skybridge Capital own (AAPL)
Scaramucci and Skybridge Capital own (GOOG)
Scaramucci and Skybridge Capital own (GS)
Scaramucci and Skybridge Capital own (PEP)
Scaramucci and Skybridge Capital own (RAI)
Scaramucci and Skybridge Capital own U.S. Dollars

For Joe Terranova
Terranova is chief market strategist of Virtus Investment Partners, LTD.
Virtus Investment Partners own more than 1% of (ABAX)
Virtus Investment Partners own more than 1% of (ALK)
Virtus Investment Partners own more than 1% of (AMKR)
Virtus Investment Partners own more than 1% of (CASS)
Virtus Investment Partners own more than 1% of (CSVI)
Virtus Investment Partners own more than 1% of (IGE)
Virtus Investment Partners own more than 1% of (LDR)
Virtus Investment Partners own more than 1% of (LPHI)
Virtus Investment Partners own more than 1% of (MGRC)
Virtus Investment Partners own more than 1% of (NRCI)
Virtus Investment Partners own more than 1% of (DBV)
Virtus Investment Partners own more than 1% of (XLB)
Virtus Investment Partners own more than 1% of (XLP)
Virtus Investment Partners own more than 1% of (XLY)
Virtus Investment Partners own more than 1% of (XLF)
Virtus Investment Partners own more than 1% of (XLI)
Virtus Investment Partners own more than 1% of (XLU)
Virtus Investment Partners own more than 1% of (SUBK)
Virtus Investment Partners own more than 1% of (WDFC)
Virtus Investment Partners own more than 1% of (YDNT)
Virtus Investment Partners own more than 1% of (DLUEY)
Virtus Investment Partners own more than 1% of (DRYS)

For Steve Grasso:
Stuart Frankel & Co and it’s partners own (BAX)
Stuart Frankel & Co and it’s partners own (COG)
Stuart Frankel & Co and it’s partners own (CUBA)
Stuart Frankel & Co and it’s partners own (GERN)
Stuart Frankel & Co and it’s partners own (HPQ)
Stuart Frankel & Co and it’s partners own (HSPO)
Stuart Frankel & Co and it’s partners own (MERC)
Stuart Frankel & Co and it’s partners own (NWS.A)
Stuart Frankel & Co and it’s partners own (NYX)
Stuart Frankel & Co and it’s partners own (PDE)
Stuart Frankel & Co and it’s partners own (PFE)
Stuart Frankel & Co and it’s partners own (PRST)
Stuart Frankel & Co and it’s partners own (RDC)
Stuart Frankel & Co and it’s partners own (TLM)
Stuart Frankel & Co and it’s partners own (TRV)
Stuart Frankel & Co and it’s partners own (XRX)
Stuart Frankel & Co and it’s partners own (SDS)
Stuart Frankel & Co and it’s partners are short (QQQQ)

For Gene Munster
(ACOM), (LOGM), (RLOC) have been investment banking clients of Piper Jaffray during the past 12 months
Piper Jaffray expects to have (RLOC) as investment banking clients within the next three months
Piper Jaffray received non-investment banking securities-related compensation from (DRIV) during the past 12 months
Piper Jaffray makes a market in (AAPL), (ACOM), (AMZN), (BIDU), (DRIV), (EBAY), (FMCN), (GOOG), (GSIC), (IACI), (KONG), (LOGM), (MCHX), (MELI), (PRTS), (RLOC), (SINA), (SOHU), (VCLK), (WWWW), (YHOO)

For Carter Worth
***No Disclosures***

For Mark Fisher
***No Disclosures***

For Jon Najarian
***No Disclosures***

For Scott Raynovich
***No Disclosures***

For Brian Stutland
***No Disclosures***

For Allan Loeb
***No Disclosures***

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