Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: In the first trading day since jumping 39% to close last week, shares of Cray (CRAY) fell nearly 14% Tuesday.

So what: Though Cray admittedly turned in impressive fourth-quarter results and encouraging forward guidance Friday, the rise was so big it's hard to be surprised at today's pullback.

In fact, with shares trading at 48 times this year's expected earnings, that's exactly why I suggested at the time "investors would do well to let the dust settle before making any decisions about buying Cray in the near term."

Now what: On a more positive note, bullish investors who missed the pop but were patient enough not to dive right in have been presented with a much more attractive long-term entry point. Even so, I still don't think Cray is particularly attractive with the stock currently trading around 44 time last year's earnings and 36 times next year's estimates. As a result, I'm more than happy to continue watching from the sidelines for now.