Tech Crash! Why the Broad Market Could Be Next...

Keep your guard up. The countless momentum breakdowns we're seeing could quickly spread throughout the market and bleed your trading account dry. March 25, 2014     Tech Crash! Why the Broad Market Could Be Next...   Tech takes a beating (again) No lipstick for pigs Plus: A new trading challenge for you...   Greg Guenthner coming to you from Baltimore, MD... Greg Guenthner Keep your guard up. The countless momentum breakdowns we're seeing could quickly spread throughout the market and bleed your trading account dry. I warned you yesterday that the market looked like it was ready to tap dance on our faces. But wait just a minute... The S&P dropped half a percent--and the Dow nearly broke even on the day. Hardly cause for panic, right? Sure, most of the larger stocks survived. But if you look at the NASDAQ, you'll see an entirely different picture. The tech-heavy index dropped more than 1% Monday. The turds in the punchbowl this week just happen to be the high-flying momentum stocks I warned you about yesterday... Even with the 1% drop yesterday, the real damage happened under the NASDAQ's surface. Twitter fell more than 4%. Facebook lost nearly 5%. Netflix dropped nearly 7%. Google--which had risen as much as 9% so far this year--dropped another 2% yesterday, chopping its year-to-date gains to a paltry 3%. Granted, these popular stocks aren't the entire market. But they are some of the flashiest stocks retail investors love to buy. Even if you don't own a single share of these popular momentum names, yesterday's market action is cause for concern. "I don't think that Twitter Inc., LinkedIn Corp., Netflix Inc. or Tesla Motors Inc. are the force that has been driving the market higher -- but they certainly garner an enormous amount of attention from the trading public and financial press," Barry Ritholtz explains via his Bloomberg View column. "But let's not put lipstick on this pig. The technology sector was down almost 2 percent today while the broader market is down less than half a point. And while technology is off a little more than 4 percent from its peak... some names are just getting knocked down from their peaks." You might wonder where the hell all this hot money is going... Look no further than the old school technology stocks. After Microsoft's big breakout early last week, the stock continues to sneak higher. IBM also finished the day higher. And Apple, the bear market wonder, jumped more than 1% on the day. If you absolutely have to be in anything technology related, these stocks are where you can hide out for now.         "Hidden" Treasury Document Plans to Devalue Your Money A U.S. Treasury document plans to purposely devalue your money potentially within the next 12 months. But it may have created the safest (and easiest) investment opportunity in 30 years. Click here for all the details.           Rude Numbers Targets, Predictions and Wild Guesses   10% losses in the price of copper are in the books so far this year. Dr. Copper has stopped the bleeding (for now), resting just under $3... 45% off of its highs and down 40% year-to-date, 3D Systems Corp is quickly leading the 3D printing sector lower. With popular momentum stocks continuing to struggle this year, we could still see plenty more downside action in this space... $539 is how much you will pay for one share of Apple stock. The tech giant actually weathered yesterday's storm quiet well, posting a small gain on the day... $1,316 marks the spot for gold futures early this morning. The yellow metal is in damage-control mode today, gaining about $5 after dropping to a low of $1,308 Monday... 1,854 is where you'll find S&P futures this morning. The broad market is indicating a slightly higher open after stocks sagged yesterday...     Rude Trends When to Buy... When to Sell   You've packed my inbox full with your trading questions lately. And I think I've finally found a way to help you kick start your stock trading journey... It's called the 21-Day Trading Challenge. Here are a couple of important notes on this challenge... You don't need any prior trading experience to take part (and potentially profit) in this challenge. You can even "paper trade" so you can get a feel for how it all works without putting any of your money at stake... Click here to see how the 21-Day Trading Challenge will show you how to crush the market repeatedly, over and over again-- up to 25 times per year. Get started right now... [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   Is Obama Terrified of the "Secret $200 Retirement Blueprint?" How a Carpenter and a Puppet Maker Could Kill Obamacare Oust the NSA With One $7 "Trick"     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. To end your Rude Awakening e-mail subscription and associated external offers sent from The Rude Awakening, click here. Please read our Privacy Statement. For any further comments or concerns please email us at rude@agorafinancial.com. If you are you having trouble receiving your Rude Awakening subscription, you can ensure its arrival in your mailbox by whitelisting The Rude Awakening. © 2014 Agora Financial, LLC. 808 Saint Paul Street, Baltimore MD 21202. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investment advice. We expressly forbid our writers from having a financial interest in any security they personally recommend to our readers. All of our employees and agents must wait 24 hours after on-line publication or 72 hours after the mailing of a printed-only publication prior to following an initial recommendation. Any investments recommended in this letter should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.