Folks, we've got three major things to discuss: Number one: the billions in capital calls coming that will wreak havoc on global stocks and bonds, number two: the fact that a record number of small businesses are reporting they can't even pay their rent, and number three: a violent breakdown on the hottest trades that you need to know about two of which you should really know about before tomorrow's midterms for your viewing pleasure. I Will put all the time stamps down below and today I Am very excited to announce the start of our Black Friday sale on Zip Trader U Each year we save our best sale for Black Friday and this year we'll carry on that tradition Coupon code. Block 60 is our first and only 60 off coupon code on our program's one-time fee lock-in lifetime access today, and get access to our step-by-step lessons, private chat, daily morning briefings, and full price Target list alongside all other trading resources. I Will put the link down below if you want to learn more.

Okay folks, so my voice is still a little bit gone, but bear with me here: listen to this headline from Bloomberg Quote: Billions in capital calls threatened to wreak havoc on global stocks bonds. Capital calls outweigh distributions for private funds cash-strapped investors forced to consider stock Bond sales in order to get cash to handle these calls. So what exactly is a Capital Call? Charlie What is everybody having to rush to get cash in order to do well? A capital call is a legal right of an investment firm or an insurance firm to demand a portion of the money promised to it by an investor. So when very wealthy investors or funds or overall institutions go and invest in a private Equity Fund What do they do? A lot of times they commit not by actually sending them the money, but by just pure commitments.

We're going to send you the money when you need it, down the road that frees up the capital in their own bank account so they have current present day liquidity and they can invest it in something else. And eventually when the fund has a deal that it needs the money for or it needs to cover its operations, then all of a sudden they call up the investor and they say hey, we need the money and an investor has to go and give it to them. The problem though, is that a lot of this money was committed during a period of time where you had very, very easy money policies and you had all Equity markets booming. Nowadays we're in a completely different environment as Financial conditions tighten.

Around the World Private Market funds are demanding that investors stump more of the cash they pledged during the Easy Money days of the pandemic problem. Well, segments of the investing class may not have the capital in cash to make this work and to come up with this money in such short notice. While many big pensions and endowments are expected to have sufficient cash flows to meet these Capital calls, the fear is that a large number of other investors will have to offload liquid assets to meet the obligations. Liquid assets meaning what equities and debt to markets that are distressed massively.

If some whales in the market start offloading to cover these Capital calls, that means a lot. A lot more downside could be imminent. Five of these six private market fund categories tracked by the research firm registered negative net commitments in the third quarter, meaning investors were required to pour more money into them than came back as returns. So we are already in this environment right now where investors are getting hammered by poor performance on pretty much everything this year except for canned soup and maybe ammo.

But now they're also being forced. They're being forced to free up cash to send it into private funds that they had committed to when things were a lot healthier and the amount they have to send is increasing rapidly as firms need more and more money in order to handle the distressed debt that they own. Oof, Can you imagine that you committed tons of money during some of the bullish, most euphoric periods of time and now when everything's flipped, they want you to go and come up with all that and you're like, well, I'm already so destroyed in everything else I have And and at the same time, what I'm going to give you is also going to be destroyed. so it's like can I rather not and they're just like nope.

It's a commitment to the legally binding document and this could cause a massive, massive problem for the stock market folks. It is possible to imagine large institutions engaging in forced selling of liquid public equity to meet Capital calls and private fund. Investments And remember folks who was investing in these private Equity Funds Well, the wealthiest people in society, right? And guess what? the wealthiest members of society also have a massive control over the public markets. In fact, last year, the wealthiest 10 percent of Americans owned a record 89 percent of all U.S stocks.

The same people that work and invest with private Equity also have an outsized impact on the stock market. shocking, right. Not to mention the many other connections that the two markets have in common. The point of the matter is that when they have to start covering, when they have to start coming up with these commitments, all of a sudden, what happens.

they have to sell from somewhere or they have to dip into their cash. It's inevitable that a lot of investors aren't going to have the cash to come up with, and all of a sudden they have to start selling other things. Or perhaps they have the cash. But they don't want to Pony up the cash because they'd rather have less exposure to equity markets or investment markets overall.

now going over to the state of the US economy: more than a third of U.S small businesses could not pay their rent in full last month. more than a third in an economy that's supposed to be Fantastico Keep in mind, small businesses employ roughly half of all Americans who work in the private sector. So if a small business is not able to make good on their rent, who do you think they're not going to be able to make good on next? Who do you think they're not going to be able to pay fully next? But backing up a second to the small business problem right now. according to alignable delinquencies in education are up 13 month over month Automotive up 21 restaurants up 13 Transportation up eight percent retail up 12 gyms down a percent beauty salons up 11 And you look at the overall trend here.

this was just month over month, which was a dramatic increase in almost every category. But you go and you look at December 2021's delinquency rates and you compare them to the October rates. In pretty much every industry, you've seen a dramatic, dramatic increase in delinquencies and you could see where this trend is headed right? You could see how If the Fed continues to raise rates if things continue to get worse like they're slated to. Well, these numbers are going to get even higher and higher and higher you look at the hardest hit: States December 21 My home state of California had a small business rental delinquency rate of 27 percent.

Now it's at 44. New York was at 30 percent. Now at 45 you look at Florida 21 now 39, Texas 23 now 38 and the U.S average overall is 26 to 37 percent. Now I Know you're not supposed to say this because it's considered offensive, but when you are in an environment where you have 37 percent of small business owners and the FED is about to make that go up even more when you have 37 percent of small business owners who can't pay their rent, well, that is not a good economy.

You are in an economy that is being pushed off a cliff and you're watching it in slow motion fall off that. Cliff So what's going on here? Why can't business owners pay rent? Well, poll takers are first citing higher rents. 51 percent of small businesses said they can't pay because their rents are being raised on them and they just don't have the money to pay these higher rents. Meaning Property Owners no longer have as much pricing power you had a bunch of major corporations ago when prices were slumped and buy up a ton of commercial as well as residential real estate property across the United States And they've been trying to raise rent as fast as possible and all of a sudden they're finding hey, we don't have the pricing power that we used to number two.

they are citing the cumulative negative impact of more than a year of high inflation, which has absorbed most sales gains. Number Three: Recessionary Fear is number four steeper than usual gas prices and increasing again number Five ongoing increases in supply chain costs, Number Six Rising labor expenses and shortages and number seven a Slowdown in consumer spending. In fact, 59 59 percent of small business owners taking this poll reported that consumers are spending less this month than last. So, after struggling during the pandemic and barely getting a rebound to take a breath with, well, new small businesses are struggling with skyrocketing key expenses and dramatically slowing down of consumer spending.

The Dramatics slowing down of consumer spending How many more months do you think that small businesses have before? they have to start dumping employees? I Look at this as a very simple math problem. If you are taking in less than you are spending, eventually, you go kaput now. Finally, what are some hot trades to take advantage of right now and are based on the current environment that we're in? Well I Want to go ahead and start with Dwac. So if you are a member within zip Trader you which by the way, 60 to offer limited time, you know.

two of the major stocks we briefed on this morning were Dwac and Fun. We briefed on them roughly 30 minutes prior to Market open, which is when our morning briefings come out. Dwac here and Fun here. and the reason is because they've been catalyzed again.

Dwac, of course, is the very controversial spec that is supposed to eventually merge with Trump's Truth. Social Fun is the stock that runs in tandem with Trump News because of its connection to previous Trump campaigns. Now, regardless of whether or not you like Trump He does provide some catalysts for these stocks and trading opportunities, right? And the reason that they are running right now being little runny McGee's is because it is expected that he's going to formally announce his candidacy for the presidency shortly after the midterms, and he's been teasing it in recent days. So you have two potential catalysts for this pair, and thus two potential massive trading opportunities: Number One, number one is the several pre-anticipatory rounds of run-ups are likely to get prior to his actual announcement, and number two is the immediate post announcement pump, which then should lead to a post announcement dump.

But still, before you get that post announcement up, you should have two different opportunities: the anticipation and the actual immediate reaction. Usually, the anticipation is better than the actual event, but both tend to be very fun opportunities, right? The key though, is that if you're going to play it, remember, you always need to have a clear plan and you need to trade that clear plan. You can't just have a plan and then not follow it and wonder what happened. For example, if you're playing this intraday and your plan is price strength and your exit plan is a break of price strength.

Follow that if you're going in on directional strength and your exit plan is a break of directional strength. Follow that but keep bit consistent. We have some lessons on zipreader, U on elevating and deprecating factors and some key key methods of risk management. but if you're not in our program, we also have some free lessons on our trading tutorials playlist on the channel, so no excuse not to learn at least some Basics about risk management I Hate it when people go and they buy a stock because oh, it's running and then guess what, when do they sell when it's selling off and dumping massively and it's usually too late by the time they get out.

So something to think about risk management next I'm Matt So I'm starting to pay attention to Mmat again and here is why: Mmat had a previous cycle pump and then sell off to the moving average and now we are seeing what will likely be the start of the next dump and test cycle. if it dumps and retains a higher level of support 140, 120, even 110 I'd Consider that enough proof of resilience and retention to get us another rebound attempt to a new higher high short. Interest has continued being relatively high and stable despite the increase in share price, which to me symbolizes a higher likelihood, a higher likelihood of some extra Potential from The Squeeze Effect and options chains are factoring in a high probability of Mmat moving over two dollars a share by expiration on November 18th, which is next Friday So my take after this current sell-off subsides, This is going to be a big Battleground up until that 18th at least. Anyways, folks, I Am very, very excited and we should see a lot of opportunities and volatility this overall week.

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