We’re In A Market Gridlock, But I See One Tiny Reason for Optimism

Last week, markets barely moved.  The Dow Jones Industrial Average added 7 points or 0.04% while the S&P 500 jumped 8 points or 0.38%.  The Nasdaq Composite Index gained 0.83% to close at 5257.40 on the back of big gains at Netflix.

Markets appear to be in a holding pattern until November 8.  Having survived all three presidential food fights, they are now pricing in a Clinton victory, a possible slim Democratic majority in the Senate and a slimmer Republican majority in the House.  The real question is how much Mrs. Clinton, if she does indeed prevail, will be plagued even before she enters the Oval Office by investigations of her emails, the Clinton Foundation, her conduct as Secretary of State, and her repeated lies to investigators and the American people.

In other words, the odds of her entering office with any kind of mandate are somewhere between slim and none – which means we can look forward to, at best, four more years of gridlock.

Regardless of how hard the Republicans come at her, she will face significant resistance in Congress to her plans to raise taxes, increase entitlement spending and move the country further to the left.  The most likely scenario is further gridlock as the country moves closer to another recession and perhaps a financial crisis.

But I do see one tiny reason for market optimism… Continue reading…

The Untradeables: These Stocks Are Too Terrible to Buy, Hold, or Even Short

If you’ve been following my new service, Zenith Trading Circle, you know that I apply a series of four very specialized Stress Tests to uncover toxic stocks.

Right now we’re targeting a handful of the worst stocks in the world with trades designed to make money as these stocks inevitably collapse. (Subscribers, go here now to see how our trades are doing this week.)

But as I’ve sifted through all the garbage out in the equity markets, I’ve found several stocks that absolutely qualify as toxic, fail all my tests, but I cannot in good conscience recommend anyone put their money into trying to trade them.

Look, I’m convinced these stocks are going to fail, but for a variety of reasons, they don’t meet my trading criteria (for instance, the stocks have already dropped too far, the options are too illiquid, or there are no options available).

However, one thing that we can all do is get far, far away from them.

If you own any one of these three firebombs, drop it now and back away slowly.

Here’s why… Continue reading…

View this page online: http://suremoneyinvestor.com/2016/10/the-untradeables-these-stocks-are-too-terrible-to-buy-hold-or-even-short/