Investor's Edge with Gary Kaltbaum - AI Stocks Lead The Market Higher [11.03.2025 w Adam Sarhan]

Episode Date: November 3, 2025

https://garykaltbaum.com/

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That's Tommyjohn.com, code comfort. Tommy John. Comfort perfected. Investor's Edge with Gary Cultbaum. Straight talk about you and your money. Now from the BizTalk Studios, here is Gary Cultbaum. And welcome everyone to Investors Edge. I'm Adam Sarhan in for Gary Kaye, who's out today. Today is Monday, November 3rd, 2025, and we have a great show for you tonight. As always, I want to thank you very much for being here. Before I dive into the show, we have a lot to cover, but some general housekeeping. Just in case you don't know already,

but if you do know, this is a show about you and your money and all of the fun points in between. Just as a quick reminder, if you don't get this show in your city, you can go to GaryK.com. You can listen live or archive 24-7 for free, all on GaryK.com. If you want, you can subscribe to get Gary's morning notes sent directly to your inbox.

You can follow Gary on X, formerly known as Twitter, by just pressing the button. You may email Gary, ask about his money management services, or if you want to join his premium service, it's convictionleaders.com. You can take a free trial there. Once again, that's convictionleaders.com. He updates members several times a day, gives leaders, laggards, bullish areas, places to avoid, gives daily webcasts so you can hear him on the radio, which we do now.

But you can also see him on the webcast where he goes through the charts. You can see him go through the market. And actually, that's one of my favorite things, is see. the action as he says it. So that's really, really powerful. And all of that, again, is available at convictionleaders.com. All right. So we have a lot going on in the market. Number one, we have a ton of earnings coming out this week. I think somewhere along the lines of 10% or so of the S&P 500 are reporting earnings this week or somewhere thereabout. It's not exactly 10, but somewhere, a lot stock. I'll just put it that way. Keep it super, super simple. So the idea is now, I spoke

you last week about what I do with earnings, how I handle earnings and how I break things down. I'll go through a lot of that now. We have news. I want to be clear and cover messages from Gary right off the bat so I can do my job as the messenger and let you know what he's saying. Important thing is the NASDAQ was leading or is leading and under the surface we're seeing some cracks or some weakness. You know, AI is strong, but it's getting to the point where it's a little much type of

thing, right? So you look at the day today, NASDAQ leads all day, small caps, the Russell 2000 down, right? Dow is down. Nasdaq's leading. So what it shows us is that it's a narrow area of the market that continues to lead and put up most of the gains. Now, we've seen this before. Actually, over the weekend, Gary put out an excellent webcast on conviction leaders for members where he went through, 1999. And the dot-com, boom, the bubble that we saw back then, anything basically was a dot-com just took off and went bonkers, even if it didn't have sales or earnings.

You know, lots of times you would just see just about anything go bonkers, not literally every stock with the dot-com went up, but many stocks would just put dot-com on their name, and then boom, they would double, triple, quadruple, or what have you, in the madness of the dot-com frenzy. Well, all right, something similar is happening now with AI, where just today, Amazon, for example, announces a deal with Open AI, the ship Navidia chips, and boom, Amazon gaps up on the news. You know, Qualcomm said they're doing AI chips last week, and that boom exploded and broke out of a nice base.

So, again, a lot of we're seeing a lot of companies jump on this AI frenzy. Now, as an update, there's the tail of two tapes, if you will. The tape is an old way of saying the stock market, but it's a play on the tail of two cities. But under the surface, there's really two things happening. And we're seeing that with third quarter earnings. It's somewhat of a divided economy. AI, tech, big cap tech, AI, for the most part, not all of them doing well. Now, you saw stocks like meta last week, which is investing gobs and gobs of money into AI, not do well.

In fact, meta gapped down hard last week. Meta's formerly known as Facebook broke the 200 day on earnings. That was on Thursday. Friday fell again. And now it's falling even more. So just because it has AI or it's moving in the AI world, doesn't mean it has to go up. Again, just to be very, very clear.

But for the most part, we're seeing a lot of just that frenzy-ish type move. And a lot of stocks, which, again, Gary's discussed us, no sales. no revenue is coming in or has come in up until now, but the stocks have double, triple, quadrupled. It's kind of like the other frenzies that we've seen in the past. I remember back in 2015, we saw a no-sales biotech bubble. If you go back and look at the XBI over a long, or an IBB, the XBI is an ETF that tracks biotech stocks over a long enough period. You can see a huge rally from 8, 9, 2010-ish, 21, 2011, 12, 13, 14, 15, and then boom, in the bubble popped, and then huge move down afterwards. And it took a long time years for it to reset and build up again and all that fun stuff.

But again, we've seen this before. Doesn't mean that AI is a bubble. Doesn't mean that this can't go higher. It doesn't mean anything. All I'm just saying, right here, right now, it has the look and feel of a potential. froth is the best word, not bubble, but froth, you know, just frothy activity. When you see stocks that have no sales, no earnings go up, double, triple, quadruple, go from 10 to 50, 10 to 80, you know, that kind of stuff in the last six to eight months, that's, I mean,

with no sales. So that doesn't mean they're not going to have sales going forward. I get that. You see that in quantum computing. There's a lot of these quantum computing stocks that have had huge moves. I mean, ginormous moves. but they don't really have earnings. So again, under the surface, there's lots of areas to avoid that just are not acting well,

and there's a lot of areas that are acting well. So to go through it, let's go, Gary had a good post today on conviction leaders, bearish areas, which I can read for you. The many bearish areas we've been highlighting for you look to be worsening. We hope you have listened. Those that have to be fully invested at all time, some of these big funds, they have to always be invested, right? must recognize that there is trouble afoot in those areas,

watching names like BLK, BX, MA, and those are finance and private equity companies, and MA is a master card, it's credit card company, and the many insurance names now are really getting smoked. These are not unimportant areas. So these are important areas, he's saying. We now watch the big banks, because if they get tagged, we'll only add to the technical trouble.

Goldman Sachs, GS, and JP Morgan, JP, JPM will need to hold the 50 day, not good action early on. Other banks acting better, but we believe those are the two most important banks right now. Regional banks, the KRE, have been continuously lagging. We also note something like Netflix was upgraded today, but it's down 18 bucks, right? Or this was in the morning when he posted it. Oracle just continues to get worse. Bitcoin gets worse and looks like an inverted handle, which is a bearish pattern.

We also note that housing and housing related stocks are worsening. In fact, the XHB, which is housing ETF, broke below support today and below its 200-day moving averages, trading right near it. So that's not a good sign for real estate stocks and for the real estate market too, because many times the economy mirrors the stock market and vice versa. Where the market moves before, the economy follows. And of course, all the other areas we deemed in downtrends slash bearish phases in differing levels in payroll, auto dealers, waste management retail, one of the best ones, which is Ralph Lauren, R.L. Crack

today, travel-related stocks, non-A-I economically sensitive stocks, all not acting well. Those are all bearish phases. The mid-cap stocks, M-D-Y, broke the 50-day moving average just recently. And then lousy numbers from Tesla, they reported something. It tried to break out. It's early. It didn't and that strong, but still, intradate. It was a decent close for Tesla. I mean, it's not bad, but it's one of those situations where it's like, oh, okay, you got good action there, but numbers, not so much. And then, of course, later this week, I believe they have that vote for Musk's trillion

dollar pay package, I think it is, or some crazy number, which you'll probably get if I had to guess. So that's the news. I mean, there's some areas that are working, no question, and many areas that are not working. So we still have the government shut down. Many federal workers are going without pay. I mean, that's big. They're not getting paid. It's not like it's one day or two days of not getting paid. It's now, I think it's 34 days or it's over 30 days. That's a lot. What do you do with your mortgage? Just tell the bank, hey, sorry, I'm not getting paid. I can't pay you. You know, how do you

eat? How do you go to restaurants, stocks? By the way, look at Chipotle, CMG, gap down last week on earnings. earnings are only up 7% sales were up 8%. Stock got crushed on earnings. If you look at other restaurant stocks, also a lot of them, if not most of them, are in downtrends or bearish phases. Cheesecake Factory, take your simple cake, C-A-K-E, was at $69 in the summer.

It's now at 47 and making new lows. Kava, which is a Chipotle-style restaurant for Mediterranean food or Greek food or whatever it is in that area. Okay, great. Mediterranean food, I think, is, I'm not a foodie, but that's, I think, what the right label is there. 144 in February of this year.

It's now at 51, ticker symbol, CAVA, C-A-V-A. Wingstop, another area to avoid just a weak area. W-I-N-G was at 388 in June, and now it's at 211. Just weak action. So when you go back and you pause and you look at the market, you want to find stocks that are acting well, but you also want to find stocks that, you know, areas that are working and areas that are avoiding and stay away from the areas that are avoiding.

And if you can do that, you're way ahead of the game. Up next, we've got a lot more to cover. I'm Adam Sarhan. This is the one and only Investors Edge. Hi, I'm Gary Kalbaum, hosted a nationally syndicated radio show Investors Edge. We're not just handsome radio people. We manage investors money for a living, specializing in fee-based discretionary money management. No big commissions, just a fee on the assets that's.

manage. We also provide a full range of personalized services, including retirement planning, fixed income, and educational needs, all to assist you in achieving your financial goals. Understanding not all individuals have the same needs, we'll carefully evaluate your personal goals to determine a proper investment strategy. If your current approach to investing is not getting you to where you would like to be, call us to make an appointment for a complimentary portfolio review. The number to call is 888-4-22-4-2-2-4-2.4.4.4.4.4.4.4.4.4. Call us to make an appointment for, 5559. That's 888422-5-5-9. That's 888. 422-5-5-9. Investment Advisory Services offered through Call Bomb Capital Management. Guys, it's no use putting it off. The best time for an underwear refresh is now.

Tommy John Underwear is designed for a perfect fit that stays put all day. Their zero-chafe thanks to four times more stretch than competing brands and their innovative horizontal quick-drawals. fly is a game changer. With over 30 million pairs sold, there are thousands of men out there more comfortable than you. Don't settle for less. Go to Tommyjohn.com today for 25% off your first order with code comfort. That's Tommyjohn.com code comfort. Tommy John. Comfort perfected. This message is brought to you by the Capital One Venture X card. Venture X offers the premium benefits you expect, like a $300 annual Capital One travel credit for less than you expect. Elevate your earn with unlimited double miles on every purchase,

bringing you one step closer to your next dream destination. Plus, enjoy access to over 1,000 airport lounges worldwide. The Capital One Venture X card. What's in your wallet? Terms apply, lounge access is subject to change. See Capital One.com for details. This episode is brought to you by Spreaker. The platform responsible for a rapidly spreading condition known as podcast brain.

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Start your show today. at spreeker.com. Spreaker, because if you're going to talk to yourself for an hour, you might as well publish it. It's time to switch on the integrator units and get the brain cells working. You're listening to. Hey, this promises to be fun. Investors Edge. The last bastion of quality programming with Gary Coltbaum. It doesn't get better than this. And welcome once again to Investors Edge. In case you're just joining us or missed any part of the show, you can go to Gary K.com, rewind, fast forward, listen live for archive anytime you want. I know I tend to speak fast at times. So much to say and so little time to say it. So if you want, you can pause, rewind,

fast forward, listen over and over again at your convenience. So areas that are working. You know, I spoke about bearish areas to avoid. Let's talk about some bullish areas that are working this year. One of the strongest markets this year, gold. In fact, last I checked, gold is up more than the U.S. stock market this year. It's one of the strongest areas. Super strong action. What does that mean? It means, hey, it's a leading group. It doesn't mean that has to continue leading going forward. It just means that it's a leading group right now. I think gold is up over 40, almost 50 percent year to date. I mean, phenomenal, phenomenal action. Again, I'm not 100 percent sure on that, so I don't want to, don't quote me on that double check everything. In fact, double check, triple check everything I say.

You know, I believe it's right, but I'm human. I do make mistakes and so does every other human that I know. So double and triple check everything. So gold is up big this year. All right. The NASDAQ is up this year nicely. The S&P's up nicely, but nowhere near as much as gold. I think the S&P is up about 15, 16%, maybe 17% somewhere in that range.

And gold's up, I think, around 50. So, again, huge outperformance. So clearly, gold and gold-related stocks, one of the strongest areas in the market. Now, am I going to blindly buy the, you know, gold up here after a big move up? No, I'm not. That's okay. Because why?

It needs a set up again. In August, if you look at GLD, which is an ETF that tracks gold, it was trading near three, I guess three, the mid, low 300. So let's put it that way. And then it breaks out above 316, 317 area at the end of, I guess, early September, and then just rips higher all. the way up until, let's see here, GLD just hit 403 and the 20th of October. Gynormous move.

So we have a situation now where you have just leadership. You have base building. After a big move up, folks, any stock, any ETF, any currency, any publicly traded market where there's buyers and sellers and it's a free market, it has they trend they market's trend right not all the time but there's only three things any stock can do or any market can do it can go up it can go down and it can go sideways now that being said after a big move up like gold just had there's really three things that can happen one it consolidates that move by going very tight and goes sideways and that's a very very bullish way of consolidating a big move-up, where it just goes sideways for weeks or even two, three

weeks and then just continues, breaks out again and has another leg higher. Very bullish consolidation. The other way it can consolidate is that it pulls back a little bit, and that's what the goal is doing now. And then the third scenario is that it just implodes and it just rolls right over and the whole breakout fails, and it gives back the entire move or a big chunk of that move. But really keep it super simple. After a big move up, if we're this, bold market and gold is going to continue or in any stock for that matter that has a big move up, there's two ways to consolidate. One, it goes sideways for a period of time. Two, it pulls back a little bit. And when it goes sideways, that's the more bullish of the two scenarios. So gold-related stocks,

like the GDX and GDXJ are strong, relatively speaking, areas in the market. Rightfully so, because they make money with gold prices going up because they're mining from the ground. And the cost of mining is somewhat fixed, meaning, let's say, cost them $1,000 an ounce to get the gold out of the ground. I'm just making up the number. And they can sell it for 4,000 an ounce. That's great.

They have 3,000 profit. If they can sell it for 50,000 an ounce, they got 49,000 profit, right? So the higher gold goes, the more money the miners can make, assuming all things being equal, of course. So that's one of the reasons behind, the power behind the big move-up and gold.

But again, just because it's a strong area doesn't mean I want to blindly buy it. Let it be patient. Timing is super, super important in life. Think of a comedian goes on stage and just says, knock, knock, here's a punchline. It's not funny. You're going to blow the joke. But meanwhile, if you take your time, you can get ahead and get ahead in a really, really big way.

So that's one. Think about the guy and the girl. A guy meets a girl at a bar. I'm making this up and day one, Caesar. Hey, would you marry me? Same guy and same, most likely she'll say no. Same guy and same girl, they date for, you. year, two years, whatever, six months, whatever it is. And the same question, same two people,

but the timing is different, can get a whole different answer. Nothing changed, but the timing, right? Same thing in markets. Timing is super, super, super, super important. So when you look at markets, everybody wants to buy right, buy right now, buy right now. He said, buy, bye, bye, buy, buy. They want action. But to make, you know, be really successful, it's discipline. Warren Buffett in a shareholder letter had a phenomenal line. I retweeted this today. It says patience and compounding character. Now here's his quote. This is from 1988 letter Warren Buffett wrote. The stock market is a device for transferring money from the impatient to the patient. Investing is simple, but not easy. Everyone knows to buy low and sell high. Few have the temperament to wait. Our edge isn't speed,

it's endurance. When we buy a company, we buy the people, the cold, the future cash flows, not a ticker symbol. Time turns good businesses into great ones, but only if they resist the urge to interfere. Our favorite holding period is forever because good partners and good products rarely need replacing. The key is character in business, as in life. Compounding doesn't just build wealth. It builds wisdom. You know, brilliant. Jesse Livermore, who is a more active trader than Buffett, even though Buffett says he's the long-term investor, if you look at his actions, he's tends to do a lot of trading, but that's beside the point. So we're in a situation now where,

okay, let's just understand that the big money is made in sitting. That's what Jesse Livermore said, a famous speculator from 100 years ago, who made several fortunes, also lost several fortunes on Wall Street. He's got a phenomenal story. It's a great book called Reminiscence of a Stock Operator. If you haven't read it, it's a great read. But he talks about the big money's made in the sitting. You know, you buy a stock when it breaks out, this is more or less what he would do, and then you let the market run, and it just trends, right? The uptrend unfolds. Okay, just sit. It's very difficult to sit for the bulk of that move. The temptation, you buy it a 10, it goes to 11, I got to sell. Why? Understand the psychology behind it. My book is called psychological analysis. If you haven't read it, by all means,

pick up a copy on Amazon. If you like it, please leave a nice review. It goes a long way to help other people. In it, I talk about the fact that most of us are making emotional decisions and teach people how to make rational ones, not emotional ones, but we're all making emotional decisions. So, okay, especially with our money. Okay, so let's go a little deeper here. So you buy something at 10, it goes to 11. I sell it. Why? Because I'm scared. I'm going to lose my profits. That's what most people do. The opposite is true also. I buy it at 10. It goes to 9. I'm going to buy more. Not Adam. but this is what most people do, right?

The averaging down. Why? Because they're hoping it's going to get back to even. Warren Buffett himself says, flip it. Be fearful when others are greedy and greedy when others are fearful. Super, super powerful. Understanding that time compounds. When things are going your way. Not when the stock's going against you, when it's going your way.

Up next, we've got a lot more to cover. I'm Adam Sarhan. This is the one and only investor's edge. Guys, it's no use putting it off. The best time for an underwear refresh is now. Tommy John underwear is designed for a perfect fit that stays put all day. Their zero-chafe thanks to four times more stretch than competing brands, and their innovative horizontal quick-draw fly is a game changer.

With over 30 million pairs sold, there are thousands of men out there more comfortable than you. Don't settle for less. Go to Tommyjohn.com today for 25% off your first order with Code Comfort. That's Tommyjohn.com, code comfort. Tommy John. Comfort, perfected. message is brought to you by the Capital One Venture X card. Venture X offers the premium benefits you expect, like a $300 annual Capital One travel credit for less than you expect. Elevate your

earn with unlimited double miles on every purchase, bringing you one step closer to your next dream destination. Plus, enjoy access to over 1,000 airport lounges worldwide. The Capital One Venture X card. What's in your wallet? Terms apply. Lounge access is subject to change. See Capital One.com for details. This episode is brought to you by Spreaker, the platform responsible for a rapidly spreading condition known as podcast brain. Symptoms include buying microphones you don't need, explaining RSS feeds to confused relatives, and saying things like, sorry, I can't talk right now, I'm editing audio. If this sounds familiar, you're probably already a podcaster. The good news is Spreaker makes the whole process simple. You record your show, upload it once, and Spreaker distributes it everywhere

where people listen. Apple Podcasts, Spotify, and about a dozen apps your cousin swears are the next big thing. Even better, Spreaker helps you monetize your show with ads, meaning your podcast might someday pay for, well, more microphones. Start your show today at spreeker.com. Spreaker, because if you're going to talk to yourself for an hour, you might as well publish it. his feet here. He's a Cinderella boy. With Gary Colbomb. It comes highly recommended. You're going to feel better if you talk to him. And welcome once again to Investors Edge. In case you're just joining us or miss any part of today's show, you can go to GaryK.com, rewind, fast forward, listen at your convenience 24-7 all for free. All right. So we were speaking about the big money's made in sitting

and trends, right? Markets trend. So you buy something at 10. It goes to 11. Most people want to sell it. They buy it. Why? Because they're fearful, right? You buy it at 10. It goes to nine. Most people hoping it gets back to even. Just hope and they'll hold it or they'll buy more. Buffett says, do the opposite. Be fearful when others are greedy. Green when others are fearful. Meaning, if the stock's at 10, it's going to go to 20 or 50. It's going to double or triple or quadruple or go to 100. It has to go to 11 first and then 12 and then 13. So if you're selling it at 11 because you're fearful you're going to lose the profits, what ends up happening? The numbers don't really work because the way trend following works is that a lot of breakouts don't work and that's okay if you keep your losses small and you let your winners run

and that means letting it go to 20 or 30 or 40 or 50 or whatever ends up happening right now how do you know there is no that i know at least there's no 100% way of knowing for sure every single time but again that's okay the idea is to capture the bulk of the move and you do that by sitting when things are working in the other side i would say this when things are working When things are going your way, that's when you sit. When things are not going your way, get out fast. That's my philosophy at least. Take a small loss, move on, find the next idea. And again, the beauty of this is that if you take the emotions out of it, they're just numbers. So you have a stock, let's say, going sideways for six months between, you know, 50 and 55.

That area is, well, there's two big lines there. So let's say every time it gets a 55, it goes down the 50 and it goes back up 55 and then down the 50 and you know thereabouts not to the penny but more or less a range or an area well okay 55 in that case would be resistance 50 would be support okay so it could do that for six months it could do that for a year it could do that for five years it could do that for even longer there's no rules but once that breakout occurs something has changed therefore it's binary the stock or the market broke out okay now i know there's a chance for an uptrend to begin.

Remember, there's only three things that the market can, any stock or any market can do. It goes up, it goes down, or it goes sideways. That's it. So if it breaks out of the trading range, 50 to 55 in this hypothetical example, it has a chance to start a new uptrend. Okay. Now, one of two things are going to happen. Either the breakout works, more buyers show up, or it rolls over and the breakout fails.

Point is, it's binary. Either breakout works or it doesn't. And if it works, I'll give it. some room. You know, initially I'll put the stop below the breakout point, 5% below the entry, somewhere in that range. And if I get tagged, I get tagged. I have a small loss. Typically, I want to lose less than 1% of my portfolio on any given idea, 20 basis points, 50 basis points. Just be wrong, small. 70 base points. Depends on the size, but if you take a 10% position and you put a 10% stop, you lose 1% if you're wrong, right? Just keep the numbers super simple.

of your portfolio. You have $100,000, you buy $10,000 worth of stock. You put a stop in below 10% below your entry and you get tagged. You'll lose about $1,000. Again, easy math. You can double check all this to make sure you're right. And it could be wrong here. It's double check everything. But more or less. So I don't let it go down 10%. There's no reason. If I'm down 5%, six, seven percent, I'm out. So I'm going to lose less than 1% on any given position, assuming it's a normal size position and around 10%. Okay, great. This is just what I do. Obviously, do whatever works for you. No investment advice is being given. I don't know you. I can't give you. Everything is just general in nature and just what I do and all that fun stuff. So, okay, it now breaks out. Let's say it gets

55. I buy it. 55 10, right? Let's say 55 and a quarter, somewhere above the pivot point. And then it keeps running. Great. First thing I want to do is move my stop to break even. I give it some time because lots of times it could go above the pivot point and they go below it and they get back above it again and then, you know, just dance around a little bit. But as long as I'm not down 5% or more from my entry, I'll give it some room. And then if it keeps running, let's say I'm up 5% or 6%, I'll keep it there. But if it gets closer to 10%, once I hit that 7, 8, 9, 10% threshold, depending on how the stock performs after I get in, I'll move my stop, my protective stop to break even.

If I do it when it's up 2% or 3%, it could easily go right back and I get tagged and I miss the bigger move. I try to give it some room. But if it takes, you know, a few days and weeks that just sit in near 55, it goes to 56 and just sits, I'm not really enthusiastic. I'm not really happy, especially when there's other opportunities out there that are working. That's also big. So, okay, great. Then what? Then at that point in time, what I want to do is I want to say, okay, if it's up 10% or more, let's say it up 15% for my entry, it worked out well, great. Move it to break even. And then let it, just give it some space. Let it, give it room to run. Give it room to breathe. I don't want to choke the position by moving to stop up too much. I might use a 20 day moving average, a 50 day moving average.

I might use recent weekly lows. We might use that 55 level as an area, whatever, maybe a new base builds between 60 and 65. Every situation is different. But the idea is I kind of want to get out of the way. I make the decisions of what I'm going to do over the weekend when the markets are closed. This way I'm staring at the screen all day and then it goes down a little bit on some a blip on the weekly chart or you know just a blip on even the daily chart it just goes down shakes people out i'm staring at it then i get make an emotional decision and then boom it goes up without me no i've done that way too many times so i try to remove myself in the intraday action and zoom out a little bit and say okay here's my plan for the week here are the stocks i'm looking at here's stock setting up here are the

stock's breaking out or that are getting close to their pivot points or their entry points. And if they break out, I'll buy. And here's my protective cell stop. So before I enter, I have a plan. I know I'm going to enter. I know I'm going to exit. And I know how much I'm going to risk if I'm wrong. Again, those three magic questions. Where am I going to enter? Where am I going to exit? And how much do I risk if I'm wrong have served me very, very well over the years? Because this is a business of managing risk, right? And, have emotions. We all don't think we're emotional creatures. Of course, I'm logical. Of course. I've got my brain, so on and so forth. I just spoke to a 22-year-old college grad the other day who was

doing some work for me. Actually, he was doing some work on breakouts and setups.com, which gives people the ability to find breakouts in real time and stock setting up. Feel free. There's a 14-day free trial if you want to try it. That's a site that I built separate from anything else. It's just I wanted tools, ways to find stocks breaking out in real time because I missed too many breakouts. I did that for years and years and years and years. Finally, I was able to put together a team. We built an algorithm and all that fun stuff.

And now we're able to do that. So I said, let me share it with other people. If you like it, great. All right, that's all available at breakout and setups. But I was speaking to this 22-year-old kid and I said, hey, you know, we're emotional creatures. And the guy goes, no, I'm not. I'm very logical.

He's telling me about his degrees and all this stuff. I said, what was the biggest purchase you've ever done? He said, oh, I bought my dream laptop. And he started going into it. I said, stop. He's telling me about the RAM and the I-9 and I-7, whatever it is, a gaming laptop, the resolution, and the video, chips, and this thing. I'm like, listen, stop. Pause. Was that an emotional decision or a logical one? And he paused and he kind of understood, but he didn't want to admit it yet. I said, okay, great, pause for a second. Did you love that laptop? He goes, yeah, it was my dream. I said, logically, could you have bought a different laptop that was more economical? I said, was it expensive? Remember, my question was, what's your biggest purchase? Same to you. What's your biggest purchase? purchase. Okay. Yeah, I could have bought a different one if I just looked at the specs and

you know, use my logical brain, so on and so forth. They said, exactly. We're not robots. Yet at least we're not robots. We're emotional creatures. We justify it with logic. It's something called cognitive biases, which I cover my book also, but you can Google them, cognitive biases, where if you have a mind or you have a brain, you have biases. It's just that simple. And they influence and they impact the way we make decisions. Really simple. And one of them is that we make decisions with emotions and we justify it with whatever logic supports our preconceived decision. So if I'm going to buy Apple, hey, I'm going to buy it because the PE ratio, because the earnings growing because it blah, blah, blah, blah, blah. And then I'm going to dismiss simultaneously all the negative reasons that kind of go against my decision.

Not all of them, not literally white or, you know, white or blacker. It's not absolutes. But again, the spirit of the law, not the letter of the law. take what I'm saying in the spirit of what I'm saying, not exactly word for word. So, okay, most humans are emotional creatures. Look at weight. Most people are overweight, but it's a simple formula. Calories in versus calories out.

That's it. It's all you got to do to lose weight. Less calories come in, then go out. You burn more calories, you lose weight. That's it. But most people over it, why? Because it feels good to eat the cookie. and it doesn't feel good to go to the gym for most people.

Okay, that mindset is, but logically, it would make sense, just less calories in and be done for a long enough period of time. Again, emotions drive our decisions most of the time, not all the time, but most of the time. And especially when it comes to our money, because we're emotionally attached to our money. Think of a doctor. They can't perform surgery on their immediate family. Why? because they'll make emotional decisions.

They won't do what's best for the patient. Oh, it's my daughter on the table. It's my mother or father, whatever the case is. All right, hope the point to me. Up next, we've got a lot more to cover. I'm Adam Sarhan. I want to thank you very much for being here. This is the one and only investors' age.

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microphones. Start your show today at spreeker.com. Spreaker, because if you're going to talk to yourself for an hour, you might as well publish it. You're listening to. What are we waiting for? Well, what are you waiting for? One, two, ready, go. Action! Investers Edge with Gary Culpa. And welcome once again to Investor's Edge. In case you're just joining us or missed any part of the show, Go to GaryKK.com. Rewind, fast forward, listen at your convenience anytime you want. 24-7. All right, the market closed today. The NASDAQ was up 109 points to 23,834.

The S&P was up 11 points to 6851, almost 6852. The Dow was down 226 points to 47,336. The Russell 2000 ended down nine points to 2470. After the close, Pallenteer, Topps estimates, or they reported earnings, They topped estimates. They boost their fourth quarter guidance on AI adoption. The stock, it's still early, meaning it's after hours. We could expect swings.

But the stock is up about 3% on the news. I'm sure that'll change in 10 minutes and 20 minutes and a half. It just came out. So it could change afterwards by tomorrow's open. By tomorrow's closed. Now it's up about 4%. So again, up a little bit after hours. The stock reported numbers and investors are going to digest that number and see what

happens tomorrow. So other stocks are reporting earnings as well, but I'll go through that afterwards. So well, just I'll leave it for now. Let's let's finish up with what we have cooking here because we have only a few minutes left and time really does fly by. So today was the first trading day of November. His seasonally, November tends to be in December positive months in the market. There's an old saying that says sell in May and go away. So typically from May, until October, historically, was not the best period for stocks. It's not always the case. This year obviously was an exception.

It was a very good period. Every month we've been up since April, more or less, in the NASDAQ and the S&P, again, more or less. So it's been a very strong period. But seasonally, November and December tend to be strong months for stocks. All right, we are up a lot for the year. So we'll keep that in mind as well. Short term, we're seeing a little bit of weakness show up, especially outside of the AI space. semiconductors, another strong group.

I spoke about gold earlier. SMH is semiconductor stocks. They're strong as well. Other areas are acting strong too. But again, just near term is just understand, okay, that could unfold. Now, just because it's a seasonally strong period doesn't mean the market's going higher. Just like sell and may and go away, oh, seasonally weak period doesn't mean the market's going lower. In fact, this year, selling may go away did not work.

So again, just putting it out there because you're going to probably hear it in the news, and all that stuff, watch the market. Listen to the market. Super and super, super important. It's follow price. The price will guide us. The single most important variable in the market that determines whether or not we make money to lose money,

it's the price. On our statement, it shows price. Price up, price down. Compared to our entry point. So if we bought something, we make money when it goes up. Okay. Is the price above my entry point? Yes or no. If it is, I'm profitable on that trade.

If it's below, I'm losing money. That's it. Just that simple. You can go deeper and overthink it and all that stuff. Keep it simple. There's a certain genius in simplicity. Again, I don't make the rules, just sharing what I've learned. So new area, I'll give you some more extended hours because we have stocks now reporting and movers, extended hours. So if you go on breakouts and setups.com, again, this is my website.

site. I built it to help other people. I was up for years. I was frustrated. I would miss breakouts during the day. I would miss setups. I'd miss breakdowns. I'd miss movers. Stocks moving. It was just too much. Plus my day to day and all that fun stuff. So extended hours. Now after the close, we have stocks breaking out and we have stocks moving, both up and down. So what I would do is I built this breakout and setups. I add an extended hours section. There's extended hours up and extended hours down. So really quickly, we can see stocks that are moving right away, right after the close or any given time before the open. Remember, extended hours is that day after the close up until 930, the next business day.

Okay. So San Mena, S-A-N-M, tends to be up nicely, double digits, after hours. I believe that's on earnings as well. So they reported their stock closed at 140. It's now right near 159 in the after hours of about 13%. That's a big move. another one. AX. AS.

That was actually a breakout today on breakouts. Sorry, I said A. EXAS. So E as an Edward, X as an X-ray, A as an Adam, S as and Sam, broke out today. They reported earnings, I believe, after the close. And their stock is up. Let's go here. It's up about 7% after hours.

It closed at 66.98. After hours, I have it right near 70%. A few other ones that are up big today. Ticker symbol pay. After hours, I have that one up. Let's see here. Yeah, about 14%. Close at 2858. I have it at 32.59. Now, that's not a breakout. Again, I'm just showing movers. Movers up and movers down. HIMS, up about 6% after hours. Let me confirm that. Double check. So yeah, it's up about 5 and change just under 6%. So again, these are some of the movers that. are moving up. And I have this in the column. It's really easy. You can see it. You can see the charts all on Breakout and Stuff.com. Excented hours down. I want to quickly see what's

gaping down on me. And I actually have a candle for after hours where you can see it. It's orange. So VRTX down after hours. S-R-P-T. Down. What is this? Let me check. S-R-P-T. Yeah, that's down about 22% now, 21% after hours, closed at 24. It's now at 19. Down big. SRPT. This is a biotech company. They do lose money, or they expect to lose money this year. Stock is getting crushed after hours. IAC is a big media company. They operate search engines, online portals, advertising, all that fun stuff. Their stock is down about 12% after hours. Close at 3256. And now it's down about 11% 2875. That's about 11.7% after hours. So again, if you want to quickly see lattice semiconductors, Wow, LSC. That one I have down. Let's see, it's a big mover down. I have it down about 10, almost 11% now. Close at 72.82. Was setting up nicely and it got crushed on earnings now down to 65 in the after hours. So again, all of that, I built these tools. It's okay, there's, it's not 100% perfect. But I said, all right, it could help other people as well. So quickly I can see movers during the day. I can see movers after hours, because he movers up and down.

real simple. It can see new highs, new lows, and then breakouts, of course, in real time. And then after hours, breakouts as well. If there are any, if there's no breakouts after hours, it'll say no breakouts. Just because the stock's up a lot doesn't mean it's actually breaking out. Like, EXAS broke out during the day today. Okay, after hour, it's up a lot, but it's not going to show up as an after hours breakout because it already broke out. So again, if it just has a big move up, but it's in the middle of the base, it's not a breakout. So hope all this helps. We have a lot of earnings coming out. Just take a look. See the winners. The ones that gap up, the ones that gap down, no Buono. The ones that gap up for short term,

Buono. Let the market guide us. We'll take it day by day. I want to thank you very much for being here. I believe Gary be back tomorrow. This is the one and only Investors Edge. Good night. This has been Investors Edge with Gary Coltbaum on BizTalk. To listen to past episodes or to get in contact with Gary, go to GaryK.com. That's GaryK.com. Guys, it's no use putting it off. The best time for an underwear refresh is now. Tommy John underwear is designed for a perfect fit that stays put all day. Their zero-chafe thanks to four times more stretch than competing brands.

And their innovative horizontal quick-draw fly is a game changer. With over 30 million pairs sold, there are thousands of men out there more comfortable than you. Don't settle for less. Go to Tommyjohn.com today for 25% off your first order with CodeCompert. That's Tommyjohn.com. Comfort. Tommy John. Comfort perfected. This message is brought to you by the Capital One Venture X card. Venture X offers the premium benefits you expect, like a $300 annual Capital One travel credit for less than you expect. Elevate your earn with unlimited double miles on every purchase, bringing you one step closer to your next dream destination. Plus, enjoy access to over 1,000 airport lounges worldwide. The Capital One Venture X card. What's in your wallet? Terms apply. Lounge Access. is subject to change. See Capital One.com for details.