Avoid These Dumpster Fire Stocks Like the Plague

by | May 1, 2026

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The United States economy is currently a one-legged stool, and that stool is named artificial intelligence. Roughly 75% of the economic growth in the first quarter came from AI-related spending, which means you’re exposed to an economy that is basically flatlining, if not slightly declining.

When leadership narrows this much, every technical warning sign matters more than usual.

There are certain signals in the market that make me pump the brakes — and reverse splits topping the gainers list is one of them. I don’t mess with this stuff.

These companies don’t know how to manage a share price. They reverse split just to avoid being delisted completely, but they’re going to $0 at some point.

Q BioMed (QBIO) is a perfect example of the kind of reverse split nonsense I avoid. When that kind of stuff is making the top of the gainers list, it’s a caution signal kind of day.

Be careful out there. We could see some shenanigans.

When healthy, well-managed companies aren’t providing the leadership and momentum, money starts chasing garbage instead. That’s not sustainable — and that’s definitely not where I want my capital positioned.

This isn’t happening in a vacuum. There are global liquidity indicators flashing yellow right now. If this proxy takes a big spill and it happens fast, the U.S. market takes a spill — and that happens fast too. With foreign actors like the Bank of Japan dumping dollars, it adds another layer of warning lights.

These signals all compound each other.

Even Regular Splits Are Bearish Right Now

What makes the current environment even more concerning is that regular stock splits — typically neutral or even bullish — are behaving bearishly. Carvana (CVNA) is set for a five-for-one split, and instead of generating optimism, the setup looks heavy.

When even the supposedly positive corporate actions like regular splits are met with selling pressure, it tells you something about the underlying market psychology. Traders aren’t buying the hype — they’re using these events as exit opportunities.

That shift matters.

Layer that on top of an economy leaning entirely on AI, and the picture gets clearer. If the hyperscalers pull back on spending, the whole charade comes down pretty fast. That’s why periods where junk leads tend to end poorly — especially when the main economic driver is this fragile and the government eventually has to step in to keep things from cracking.

The bottom line is simple: Be careful out there. This is not the kind of market where you chase reverse split dumpster fires just because they’re moving. The risk-reward isn’t there, and the market is giving you hints that quality leadership is missing. Protect your capital. Stick with companies that actually deserve your money. Shiny garbage is still garbage.

Jeffry Turnmire
Jeffry Turnmire Trading

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