How to Trade the New Tech "Bubble"

Tons of stupid companies are preparing to go public. They're ready to cash in on improving market conditions. They want your money--and they'll do anything to get it. March 20, 2014     How to Trade the New Tech "Bubble"   Where have all the tech IPOs gone? The bubble that wasn't there Plus: Gold rings my bell...   Greg Guenthner coming to you from Baltimore, MD... Greg Guenthner You are witnessing one of the most crowded IPO markets in history. Tons of stupid companies are preparing to go public. They're ready to cash in on improving market conditions. They want your money--and they'll do anything to get it. According to Renaissance Capital, 45 IPOs have already been priced. That's a 96% jump from this time last year. Even more impressive is the almost 200% year-over-year increase in companies that have filed for an offering this year. But there's one thing missing from the long list of new stocks coming to the market: tech stocks. The financial media would have your believe our markets have traveled through a wormhole back to the late 90s, where every "dot-com" was ready to rob clueless investors of their hard-earned cash. But in reality, that's nothing but hot air... "Dropbox, Square, Airbnb, Uber, Spotify, Evernote, Snapchat-- Wall Street banks are chomping at the bit to get ahold of them," explains Rude researcher Noah Sugarman. "But those bankers might have to sit back down in their Italian leather chairs. Silicon Valley, of all places, is demanding underwriters' patience." While the IPO waiting room gets more crowded by the day, most of the companies that have filed this year actually hail from sectors like energy and biotech, Noah says. "The fact is, some of the biggest targets on Wall Street's list of expected tech IPO's simply aren't in any hurry to go public," Noah continues. "They're already flush with cash needed to fund operations. They're even taking an honest look at the unpredictability of their current revenues." Now, I'm not trying to say there aren't any ridiculous tech companies already on the market (I'm looking at you, Groupon). And I certainly understand some of the valuation concerns regarding tech darlings like Facebook. After all, this is a space that tosses around $19 billion for messaging startups at the drop of a hat... But the idea that we are in a massive new tech bubble is a lie. While it's probably a smart move to avoid investing in new IPOs, you shouldn't avoid the tech sector because a couple of analysts are crying about a few "overvalued" stocks. In fact, there are plenty of tradable breakouts in this space. Get my favorite tech trade here...         Urgent Tax Research Notice If you HAVE filed your 2013 tax forms, please click here. If you HAVE NOT filed your 2013 tax forms yet, please click here. Either way, the research we have for you today could change everything you knew about taxes… And could instantly save you $1,000s this tax year, and every year for life. Simply click here for all the details.           Rude Numbers Targets, Predictions and Wild Guesses   16% of China's GDP is accounted for in property, prompting many to wonder if it's time for the Chinese real estate bubble about to pop... $1.2 billion paid by Toyota to the Department of Justice ends a criminal probe into Toyota's handling of its infamous "sudden acceleration issues". 95% of the world's ATM's are running on software that's about have its plug pulled - Windows XP. 1,848 is where you'll find S&P futures this morning. Stocks are looking to start the day in the red just one day after Yellen's first day at the helm of a Fed meeting... $1,322 marks the spot for gold futures right now. Gold continues to push toward its lows this morning during what has been a disastrous week for the yellow metal...     Rude Trends When to Buy... When to Sell   Remember the first time someone punched you in the face? You stumble as you try to maintain focus on your attacker. Your vision goes blurry. And that awful ringing pounds your head... Unless you're some sort of twisted psychopath, getting your bell rung is no fun. But that's exactly what gold has done to us this week--repeatedly. After last week's big breakout, the yellow metal failed near $1,390 early Monday morning. Gold has now moved steadily lower for the past four days. Go ahead. Blame the Fed. Blame manipulation. Hell, blame me. I don't really care. The truth is, you just witnessed a classic failed breakout. Gold teased us up above support, only to come crashing down in spectacular fashion. Here's the thing about failed breakouts--they usually lead to incredibly strong moves in the opposite direction. That's what we're seeing right now in gold. I'll have more to say on this topic over the next few days. To be continued... [Ed. Note: Send your feedback here: rude@agorafinancial.com - and follow me on Twitter: @GregGuenthner]     Ignore At Your Own Peril Today's Must Read Links   Shocking New Forecast: America Has a New Wealth Weapon... Is The White House Terrified of the "Secret $200 Retirement Blueprint?" Forget Facebook, Twitter, and Instagram... Here's A New 'Social Network' That Could Bring You Profits In 2014...     BE SURE TO ADD dr@dailyreckoning.com to your address book.       Additional Articles & Commentary: Join the conversation! Follow us on social media:         The Rude Awakening is committed to protecting and respecting your privacy. We do not rent or share your email address. By submitting your email address, you consent to Agora Financial delivering daily email issues and advertisements. 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