Tag Archive for tech bubble

Current Technology Bubble Sucking Wind…

So going over our short signal on 7/7/2011 we can see that the IWM is down approximately 7% while the Nasdaq 100 is down only 1.5% or so… So does this mean that the Nasdaq 100 is safer than the IWM? In my opinion no it does not — the tech bubble is back and LNKD, OPEN, AMZN, NFLX, etc… show us that tech stocks are very vulnerable to a bear market for equities. With that said, we are not saying switch from IWM shorts to QQQ shorts but we are worried for the high valuation “growth” bubble stocks that are “leading” stocks at present. If we were actively shorting the leaders, we would note the action in former leaders as a proxy for how far the current leaders could fall. Look at AKAM which is now down 50% or JASO which is down 70% from the highs for a proxy of how far AMZN, CRM, LNKD, KKD, etc.. can fall from here. If you own these stocks, you should sell them regardless of the overall direction of the stock market or the debt ceiling farce.

The bubble is acting piggishly, and as my father put it, “when pigs die, their squeels burn circles” — that’s all that’s going on in QQQ… The banskters want their IPO money from Facebook and Groupon… They need to keep LNKD up in order to do just that, but the debt ceiling epic fail will destroy the high PE tech stocks.

Larry Summers: Yeah There Is a Tech Bubble — Confidence (Bubble) Is Back!

I personally feel there is a “Confidence Bubble” as well, but Summers was quite keen this morning on stating that the latest tech rally was indicitave of speculative excess and a 1999  style tech bubble!

Just one day after Linkedin’s 100% debut rally, Larry Summers comes out stating that technology stocks are once again in a bubble and how amazing that is considering that just two years ago you couldn’t find anyone willing to invest any money at all in tech (proof that there are a billion suckers willing to buy high and sell low)…

It was funny to see at least one well respected businessperson/central banking type that is actually critical of the AMZN rise from $40 to $198 (good short here pretty soon possibly with $200 stop)… and NFLX quadrupling in just a year…

The Linkedin IPO is further proof that investors are willing to value companies based on how “cool” they are and are willing to pay to play “farmville” with their actual savings in their Ameritrade accounts…

Those of us who have been in finance long enough know how these events usually end: heartache, losses, credit collapse, dispair, anger, denial, and increased sales of Ben and Jerry’s and Generic Whisky!