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As I suspected in Saturday’s weekly preview blog, Oracle (ORCL) got a little too hot heading into its just-released earnings report. A general rule of thumb is that a stock more than 30% above its 200 DMA is extremely overbought and ORCL was right around there at today’s close. Overall revenue and cloud services revenue growth of 9% and 30%, respectively, were probably a little lighter than bulls hoped.

As a result, the stock is currently -5% in the after-hours. I still like ORCL’s cloud story as it becomes the third largest player in that space – after Amazon (AMZN) and Microsoft (MSFT) – but I’ll wait for the stock to pull back a little more before covering my fractional short position.

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