Welcome to the new stock market bubble

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Good morning. Remember when I used to dispute all those analysts who said we were already in a “tech bubble” last year by writing about how we’d know we were finally hitting bubble phase when social networking and app-related IPOs started hitting the markets and doubling on their first day?

Annie’s shares surge in IPO debut‎ Cherry Hill Courier Post

IPO Boom: Millennial Media Doubles At Open WSJ

CafePress IPO prices above range for Thurs. debut – Marketwatch

To be clear, I don’t think it’s time to panic because bubbles can and usually do grow far beyond what you ever think is possible. Look up the peak valuation of say, Pets.com, or the LVLT 12-year chart or when AOL AOL -0.88% was worth $100 billion…is it time to add to our Webvan shares yet? (Any of you readers know the Webvan reference I’m making? Free TradingWithCody.com T-shirt for the right answer.) I’ve long predicted this echo-techo bubble we’re now entering, but that doesn’t make me any more comfortable about it for the near-term.

And I’ll tell you what — I’m growing increasingly uncomfortable about the near-term potential for this market to continue its straight up ascent. I don’t like hearing about a “Facebook IPO Halo”. I liked buying long before the Facebook IPO Halo was a concept that even existed.

So as I like to do when the markets seem to be at an important juncture, as I think they are right now, let’s ask the question — Who’s more scared right now, the bulls or the bears?

And tread lightly as we head into earnings season on top of this big run in the markets and our portfolios.

Pick, trade, win! Join now to play in MarketWatch’s quarterly earnings-focused stock competition. Face off against stock-picking pros and MarketWatch’s own experts to win prizes.

Cody Willard writes Revolution Investing for MarketWatch and posts the trades from his personal account at TradingWithCody.com. At time of publication, Cody had no positions in the stocks mentioned.

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Cody Willard

Founder, CEO & Chairman at Wall Street All-Stars, LLC

Cody Willard is the founder of Wall Street All-Stars and the principal of CL Willard Capital. Cody serves as an adjunct professor at Seton Hall University and writes TradingWithCody.com. He was an anchor on the Fox Business Network, where he was the co-host of the long-time #1-rated show on the network, Fox Business Happy Hour. He wrote a monthly investment column for The Financial Times as well as columns for TheStreet.com and was a regular guest on CNBC’s Kudlow & Company from 2004 to 2006. Cody’s stock picking ideas and economic outlooks have been featured on NBC’s The Tonight Show with Jay Leno, ABC’s 20/20, CBS Evening News, CNBC’s SquawkBox, Jon Stewart’s The Daily Show, as well as in the Financial Times, Wall Street Journal, New York Times, and many other outlets.