Investor's Edge with Gary Kaltbaum - Crypto Sell-Off Continues [12.01.2025 w Adam Sarhan]

Episode Date: December 1, 2025

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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 CultBomb. And welcome once again to Investors Edge. I'm Adam Sarhan. And for Gary Kaye, who's out today.

Today is Monday, December 1st, 2025. We have a great show for you tonight. I want to thank you very much for being here. Can't believe the year is almost over, but such is life. Time flies and goes faster. you get older, which is interesting. I don't know if time goes faster or our perception on time goes faster, but I'll come back to that in a few minutes here when we talk about the market and some, you know, reviewing things of where we are, where we can possibly go going forward and

outline some possible scenarios here. But first, some housekeeping. As you 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 the show in your city, you can go to garykat.com, pause, rewind, fast forward, Listen on any device, anytime you want, all for free. So if I go fast, feel free to pause it, rewind it, on any device by just by clicking the show and rewind it fast forward and just slide back and forward. That said, you can also on GaryK.com, listen to the show. We're live Monday through Friday, 6 to 7 p.m. Eastern. You can subscribe, 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 or go to Twitter or go to X and search. Gary Culpa and it'll show up. Or if you want to email Gary, ask about his money management services, feel free to do that on GaryK.com as well. Or if you want his premium service, it's convictionleaders.com. Once again, that's convictionleaders.com. All right, first off, right at the top of the show, I want to cover some notes from Gary.

Again, I'm the messenger here. So let me do my job and make sure to share what Gary wants me to share with you today. So for today, he writes, one of the things I want to mention Gary's been talking about But how, you know, the importance of avoiding downtrends, specifically crypto and Bitcoin are in downtrends. Overnight, we saw some heavy selling in Asia. And that spilled over to this morning.

Futures were lowered before the open because of just that risk off environment. But Bitcoin specifically and other cryptos, Ethereum and other cryptos in general, you know, Gary's been telling you to avoid for a while because they're in downtrends and they continue to go lower. So Gary says it's been using one, let's see here, it has been using on one. one asset, it looks like that may be coming home to Roost as the stock gets, oh, micro strategies. That's what he's talking about. Okay.

So MSTR, micro strategy and the leverage. So what they did was, now, whether this is right or wrong, it's not passing judgment. It's not something I would do. Let's put it that way. Micro Strategy, a big tech stock a few years ago, say, hey, you know what? We can't really compete here. Let's go ahead and go into tremendous amount of debt. We're going to buy Bitcoin.

They felt that Bitcoin was undervalued and had room to rally. And they kept on doing it. And they brought their average cost up tremendously because they would buy more and more as Bitcoin would rally. And Bitcoin would fall. They'd buy more as well. They'd just been buying it. But it's nothing wrong if you want to buy something. It's the leverage part that potentially could lead to ruin or disaster or a big problem.

I've studied throughout history, which I'll talk about leverage too. every big bank company entity trader what have you that has failed in history doesn't fail because the market goes up or down really that's not the issue the issue is their size the leverage and I'll get to that in a second but let me finish reading from Gary so what my growth strategy did was they put on a lot of leverage took on a lot of debt to buy one asset and they hope that Bitcoin would go up. Problem is when the stock, when Bitcoin doesn't go up and then goes down, now they're getting to the point where they're below the break-even level or getting close to a break-even level. And they have obligations. They have to service their debt in dollars,

not in crypto, but in dollars. And remember, Bitcoin crypto itself, there's no sales, there's no earnings, there's no product. There's no services to go back on when things go wrong. it's an asset class or it's a tradable investable thing goes up and down it goes up and it also goes down so understand when you heavily leveraged in one trade now it's this is just adam talking now it doesn't matter what that trade is every market in history that i've studied every asset class in history that i've studied does three things goes up goes down and goes sideways so if you have too much leverage, it's very difficult to sit when things go down. And Bitcoin specifically has had massive declines over the years. Yes, it's rebounded every time, but it's also gone

down tremendously. I mean, back when in 2017, 2017, it hit like $17,000, $20,000, something like that, and went down to $3,000. Imagine if you're leveraged in that trade, you were buying it $17 or $18,000 or $19,000, and it goes down to $3. Yes, eventually it went past $20,000. And now it went all the way up to 125,000. But now it's all the way down to 80, 85. Again, things, it's leverage, folks. I mean, this is super important, which I'll get to more later. But let me finish reading Gary's notes.

All right, Gary's watching the 10-year yield because if that goes higher, central banks, you know, they're lowering rates. It's something to watch because there's that relationship where central banks can lower rates. That's fine. But what actually happens in the marketplace? That's a 10-year yield. And that's important to watch as well because that impacts

everything from mortgages to, you know, bank interest rates all over the place. So the 10-year yield is really, really important. Gary's watching that closely. Also, something in the watches were watching oils. Gary's watching oils right now, energy stocks. As OPEC has said, they're not going to slow down production, which usually means the oil price could go up. And oil prices have not been going up for a while.

So those are all notes from Gary. And then just, again, understand with Bitcoin, crypto specifically, that they're in a downtrend. I mean, those are high-level notes that Gary sent over. All right, now that I've done my job, relayed that message to you, I can share everything else I want to share. All right, so let's talk about leverage. The market, the stock market, that is not crypto, but the stock market, has had a tremendous rally. You know, over the last hundred years, it's doubled several times and gone up again and again and again.

It has tremendous rally. And if you would have bought it, one-x leverage, you'd be fine. if you're able to sit through those pullbacks and never sold. No, okay, you know, Warren Buffett's notorious for being a long-term investor. Most people don't just do that. But, okay, let's just say you did. Now, if you were leverage, that same investment, just bought the S&P 500 and your 2X leverage, all of a sudden, yes, you get 2X to return on the way up, but you also have 2x of losses on the way down.

So the dot-com crash, for example, 2000, 2002, when the NASDAQ felt 80 plus percent and NASDAQ 100, and a lot of those dot-com stocks literally disappeared, it possibly knocked out. That's just 2x. Imagine if you're 5X leveraged. That same trade, the NASDAQ or the S&P going up so much over all these years, in one day, in 1987, the Dow felt the thing was 20% in a day. If you were 5x leveraged, you're wiped out.

Could not participate in the gains. Nothing changed, not the market, not the returns, not the volatility. The only thing that changed in this hypothetical example I'm sharing with you is leverage. And last time I was on the show last week, I was talking about position sizing. I think it was last Wednesday, if I'm not mistaken. What happens with position sizing? You can control how much you buy. Let's say you find a stock you like in the early days when I was getting started in the 90s.

I just buy it, put my whole portfolio in it. Who cares? Let's go. Giddy up, cowboy, you know, just hit it. okay great ruin bankrupted my account in the early days five six times until I finally learned that's not a good idea they say a wise person learns from their mistakes and a wiser person hopefully you listening learn some other people's mistakes so hopefully you can learn from that mistake you know even if it goes up it's not a sustainable trade or practice because

it's not about one trade folks it's about a thousand trades 10,000 20,000 Not saying you actively trading 20,000 times. No, it's about five years, 10 years, 20 years. If I do X, take the trading out of it. Will Y be a positive expectancy or a negative expectancy? In other words, if I sit here and put 10,000 trades on a day, I'm exaggerating just to illustrate the point, all day every day, is that a good idea?

Yeah, most likely not. If I put 100% of my portfolio in one stock or in one market, in one asset class, Bitcoin, S&P, NASDAQ, whatever it is, And it goes down, what happens? I'm toast. So keep that in mind as you move forward. Leverage is really, really powerful. It could work with you, could work against you.

And what works against you really can hurt returns tremendously. Why? Because it's just math. If you buy something and it goes down 50%, you buy something at 100, it goes to 50. It's now at 50. In order to get back to 100, it has to go up 100%. But you only lost 50%. That's just how math works.

know those numbers really powerful. That's why with trading, keep those losses small. I keep those losses small because I can recover from a small loss. A big loss, super tough to recover from. So I hope that helps because position sizing and using leverage, it's very tempting to just say, oh, this is the greatest idea in the world. This time it'll be different.

Of course, Bitcoin's different. I'm putting air quotes there. I'm being sarcastic. It doesn't matter what it is. I'm pretty sure it's not that different. There's risk involved and there's reward. Yes, the asset can change. It could be Bitcoin today.

It could be gold tomorrow. It could be something brand new tomorrow the next day, AI or whatever the case is. The end of the day, 100 years ago was railroads, then it was automobiles, then it was airplanes. Dot com's real estate. Bubbles come and go all the time. It's risk versus reward. All right. Up next, we've got a lot more to cover.

I want to thank you very much for being here. 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 managed. 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.

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Capital One.com for details. This episode is brought to you by Spreker. 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 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.

Sprinker, 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 Investor's Edge. In case you miss any part of the show, you go to GaryK.com, rewind, fast forward, listen at your convenience anytime you want. So we spoke about leverage, spoke about crypto, spoke about MSTR, which is micro strategy. Very careful there, folks, with any stock or any investment or any trade where somebody is super levered up on an idea. I saw it firsthand in the dot coms. Back in the 90s when I got started, everyone's like, oh, dot coms are going to change the world. Yes, the internet did change the world. But most of those stocks are gone.

Most of them are gone. Oh, you know, I study history. stocks, most of those stocks, gone. There's a great show on Netflix called Titans of Wall Street. Another one called Titans of Hollywood. And what do they do there? Very simple. They show you stories, going back to J.P. Morgan, Merrill Lynch, all these big Goldman Sachs, how they all got started. It's a great show for, I mean, I love it. Hollywood, the Titans of Hollywood. They talk about Universal Studios, Paramount Studios, all these shows. Thomas Edison was involved with the Hollywood industry for a while with his patents and all that.

It's just to me, it's fascinating. But I look back and I study history and you look at all these folks and they go through markets and you look at, you know, this time it's different. Really? I'm not too sure about that. So that's one to keep in mind. The use of leverage could work for you, but it could also work against you. And that's important.

The next thing, which is important to keep in mind as well, it's understanding that the up-down sideways, you know, markets can only do three things. They go up, they go down, they go sideways, but understand that pullbacks happen and they're normal. Corrections happen and they're normal. When you look at markets, there's something that I've observed over the decades now. It's called, I call it the great mini rotation. I just wrote this article on Forbes the other day. If you Google my name, Sarhan and then Forbes, S-A-R-H-H-E-R-H-E.

and then Forbes. You'll see it. It'll come up, it was one of my recent articles, the great mini rotation. And in it, I share this concept. It's something I observed over the years, where in the old days, there was this thing called the Great Rotation, from stocks to bonds, and then back, you know, back to stocks. Stocks to bonds, bonds, the stocks. It would just go back and forth, back and forth. Well, okay, great. What does that mean in plain English? Its money would rotate out of one area to another area. Okay, great. Today's world, it's not really like that.

There's a lot more asset class, a lot more, just a lot more happening. So I've observed, as the market goes higher, which just happened this year, there's usually a leading area, like AI stocks and tech stocks, semiconductors. Okay, noted, right?

They're going to lead for a while. Then they're going to pause, and they're going to pull back or consolidate the big move. And that's the consolidates, consolidation phase. Okay, noted there as well. As they pull back, sometimes the market pulls back and gets in trouble, like we saw in the first few weeks of November, but oftentimes, like we saw at the end of November, the market is resilient and continues to go higher. And how is

that possible? Because it's a stock market, but it's also a market of stocks. Meaning, if one area is going to pause, like AI, and then it passes the baton over it. to another area, that other area can easily start leading. And if that starts leading, guess what happens? You now have a new area that's leading. And leadership, that baton, right, gets passed from one area to another area to another area. So right now, you know, how do you know, Adam, what's leading at any given time? Well, I look for leading industry groups, leading sectors. The telecom fiber optics group, rank number one right now. Computer data storage, ranked number two. Biotech stocks, rank number three. Ready for this one? Energy, solar stocks rank number four. Electric

contract manufacturing stocks rank number five. Mining stocks rank golden silver, rank number six. Medical services stocks rank number seven. Retail wholesale office supply stocks rank number eight. other mining stocks, metal owner ores, number nine, and then retail department stores ranked number 10. Nowhere in the top 10 groups that I just mentioned, do you see AI? I see telecom fiber optics number one, computer data storage number two, medical biomedical number three, energy solar number four, electrical contract manufacturing number five, mining gold, silver number six, medical services seven, retail office supplies eight, mining, mining,

metals number nine and then retail department stores 10. I just repeated it in case you missed it the first time. And if you did miss it, you can go to garyk.com and listen again and again. Out of those sectors or those industry groups, AI is not the top 10 anymore. So that's the great mini rotation. The market can go higher and when it does, one industry group grabs it runs, next one passes the baton. It'll pause. So AI is pausing right now. And these other areas are starting to wake up. And then they pause and either the money flows back to AI or it goes to some undervalued area. Gary mentioned OPEC. It could be energy stocks begin to wake up and perk their head up, which I've noticed some energy stocks breaking out recently. BP and ExxonMobil and sorry, not ExxonMobil,

excuse me, it was a Chevron. A few energy stocks. What was the other one that I just saw recently breaking out Chevron Shell maybe. Let me go check on Breakouts and Setups.com. Let's see. What was that one that just caught my attention just the other day? Let's see here. Oh, Diamond Fang, F-A-N-G broke out today, Diamond Back Energy. That's an oil and gas stock.

Let's see, we have the chemical stock that broke out today, ASH, TDC. No, there was another one that was a big one that was oil gas that called my attention. It'll come to me later. I'll mention it before the end of the show. I'll check in the next break. So what happens is as you go forward, you start looking for trends. Now, all of a sudden, the AI is pausing. Maybe the energy stocks begin to wake up.

Maybe it's healthcare stocks begin to wake up, which has happened over the last few weeks and months. Healthcare stocks, the XLV, was dormant for much of this year. The XBI, which were the biotech stocks, dormant for much of this year. And then look at, when you have a chance, take a look at XLV or XBI. And you can see over the last few months, what happened? money flowed into the healthcare stocks and into the biotech stocks pretty aggressively. And now they had a big move up.

So AI is pausing. The batons pass to those groups. Now they're going to begin that maybe they pause, maybe they keep going. And then what happens? The baton can pass to another group that's undervalued or out of favor. Right now the financials, XLF, are quote unquote resting. They had a huge move from April all the way up until September area. And now they're pausing.

They're pulling back a little bit, normal and healthy so far. the transportation stocks, the IYT, setting up real nice here to breakout. That's on the setups on Breakoutesetups.com. Yeah, it's a great looking setup here, the IYT transportation stocks coming up the right side here. So again, that's what I call the great mini rotation. It's really important to stay in harmony with the market. It's my play on the word harmony because what happens is the natural tendency of my brain, at least, and other brains as well in this business,

is to fight the market. I want to be right. I'm going to pound the table. I'm right. I'm right. Instead, be in harmony with the market. Most stocks follow the major indices as well. So understanding this rhythm, this cycle that's repeatable over time frames,

full markets, it's really, really powerful. Up next, we've got a lot more to cover. I'm Adam Sarhan. This is the one and only Investors 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 stretched 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. This message is brought to you by the Capital One VentureX, 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 people listen, Apple Podcasts, Spotify, in about a dozen apps your cousin's swears are the next. 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 spreaker.com. Spreaker, because if you're going to talk to yourself for an hour, you might as well publish it. We're listening to. America is talking. Investors Edge. He's got to be pleased with that.

The crowd is just on his feet here. He's a Cinderella boy. With Gary Colbomb. recommended. You're going to feel better if you talk to. And welcome once again to Investors Edge. In case you're just joining us or miss any part of the show, you can go to GaryK.com, rewind, fast forward, listen at your convenience on any device, anywhere you want from anywhere in the world. All right. So we spoke about the fact that crypto's going

down, Bitcoin specifically. You can look at iBIT if you want to pull it up on a chart. I-BITs and ETF that tracks Bitcoin. There's many other ones, but that's one of the popular ones. It's in a downtrend. And by the way, that was another example. Back in April, had a low and then had a big rally all the way up until October. And now it's in a downtrend. All of these things are cyclical. They go up, they go down, they go sideways.

It doesn't even matter when I look at these charts after a while. Gary talks about looking at a photo album of familiar faces. It doesn't even matter what the company is or the stock does or the market or the currency or the commodity. it. If it's a freely publicly traded market, which is what I look at, they behave in very similar fashions. There's price discovery. There's overbought conditions. There's oversold conditions. There's moving averages. There's important inflection points that I watch. There's price. There's volume. So on and so forth. And then depending on the market or the asset class, you can study it and go deeper. Look at the earnings. Look at the valuation. Look at whatever you want

look at there's hundreds of metrics but for me it's just it's risk versus reward very it set me free it was like a big huge breakthrough when I understood what's really moving the the market all right so I found some of these these stocks I wanted to share with you to give you an idea of what's happening because oil and gas how do you find emerging areas you know retail we mentioned that these department stores are doing really well well what are the department stores that are doing well recent breakout was KSS. Coles. If you look at it, showed up on breakout and set up, was it four days ago last week on Wednesday.

It was a nice, no, sorry, Tuesday was a big breakout there. And that rally. Now department stores are one of the strongest groups in the market. Macy's, multiple breakouts along the last few months and ticker symbol M for Macy's. And that led the group, the department store group, to be a very strong group. So it could have continued to run? Sure. But what I'm looking for again, it's that edge, right?

It's the investor's edge. What stocks in that group are leading on the way up? I want to see them. And then, let's take a look. I'll go through a bunch of them now. Let's see here. We have Macy's. We have coals.

We have the XRT. Let me show you that one. The XRT is an ETF that tracks retail stocks. It's coming up the right side of the base, and it's above the 50D moving average. So once I find a theme, maybe, okay, notice a lot of breakouts like I mentioned earlier, in oil, for example. Over the last few weeks, lots of breakouts in oil, right? Okay, great. I found the theme.

Now what? Shell, for example, S-H-E-L, broke out recently and then pulled back a little bit. Chevron, CV-X, hasn't broken out yet, but it's trying to do a possible little double-bottom pattern here, but still needs more time. ExxonMobil, not ready yet. it broke out and then pull back a little bit. So I look at these things. I found, oh, wait, hold on a second. Here's a breakout.

Fing, Diamond Back Energy, for example, broke out. Okay, great. Are there other stocks in that group that are either setting up to break out or already broke out? And then once I go through these breakouts, again, I always like to say the market is speaking and then ask, are you listening? I can automatically, almost instantly, start seeing patterns. I was like, oh, okay, it's not just one oil stock that's breaking out.

I got a bunch. Then there's not just one. Aerospace and Defense or one biotech. I've got a bunch. A lot of gold stocks recently broke out. Okay, steel stocks are very strong right now. And then I can say, okay, I'm listening to the market now. Now I'm getting in harmony with the market.

What's working? And the ones that aren't like I bit, for example, Bitcoin, it's out of favor right now. It's not working. It's not down big today. You know, no bueno. Like they say, it's not, I don't want to be in that situation where I own something and it's getting into a steep downtrend. You know, the semiconductor index, SMH, super important area of the market, was under pressure

for most of November. On that Friday, on the 21st November, it had a big reversal, and it's been up every single day since. It's back above the 50, and it's back above the 21-day moving average. That tells me that big money still buying semiconductor stocks. So, okay, as long as it's above the 50, I'll give it the benefit of the doubt. And then I'm going to go look at some of these breakouts and say, okay, what stocks are breaking out? For example, ASML today, ASML, a European semiconductor stock, broke out today.

It's a big cap stock. Okay, it has my attention. So I'm going to look for other breakouts in the semiconductor space and see what else I can find. Broadcom AVGO broke out a few days ago and it's pulled back a little bit right to its breakout point or its pivot point. All right, something to be said there. Let me look at Navidia. Again, it's storytelling, right? Navidia is below the 50 and below the 21 day.

Let's look at Palantir, PLTR, Navidia's NVDA. PLTR, Palantir, another AI institutional sweetheart below the 50. So that's okay. So there's some stocks here that are in the AI space or in pullback mode. Not ready yet. Sometimes these stocks break out and then pull back. In the financial space, Goldman Sachs, GS, broke out and then pull back. when the market got in trouble,

in early mid-November, on the 12th, it broke out, and then it pulled back, and then it broke out again. And now it's right near its pivot point. It wasn't quite ready, but it's above the 50, and it's above the 21 day. Looks good. So again, looking for themes connecting dots. It's a really great way of doing this.

FIGS broke out today, apparel manufacturing stock. All right, they make the healthcare apparel, what do they call it, the scrubs for doctors and healthcare workers. they're really big with the making the apparel for healthcare staff. Okay. Big move in the stock recently. Had a very strong run since April from $3 to about over 10. And just sat sideways for a little bit and broke out again.

All right. Noted. It's a breakout today. So again, listening to the market, it requires just going in there. It requires you to look at things objectively. remove the ego from the decision-making process, which is the whole premise of my work. My book is called Psychological Analysis. It was number one on Amazon every day for three months because it teaches people how to make

rational, not emotional decisions with their money. Super important skills. In addition to fundamental and technical analysis, to know thyself, right? There's cognitive biases. If we have a mind, we have biases. What's impacting our decisions? So being in harmony with the market, it's a big theme for today's shows, get and harm money with the market is get aligned with what's actually happening. Not what I think

is going to happen. What's actually happening? What stocks are making new highs? What stocks are making new loans? What areas should we avoid? One of the things I love about Gary's Conviction Leader Service is he gives daily webcasts. He shows people areas to avoid and he shows leading areas to focus on. It's super powerful. You know, three out of four stocks, they say follow the market. I would argue more than that, but we know the vast majority of stocks follow the market. Okay. Then let's get aligned with the market. Is the market above the 50, below the 50, so on and so forth?

A few breakouts. Here you go. Breakouts and setups.com. ASML, new high today broke out. Apple, recent breakout hit a new high today. Apple had a big update today. Big reason why the market wasn't down more. It's a weighted index.

Apple's a big market cap stock. it impacts the market in a big way. Applied materials. Amat, another new 52-week high. By the way, these are not buy ideas, no, but they're just, I'm giving you stocks that are all-52-week highs, or hit new 52-week highs today or all-time highs. Taiwan semiconductors.

Oh, sorry, tower semiconductor, excuse me, T-S-E-M, another new high today. W-Y-N-N-N-W-Rosorts, gaming company, hit a new high today, broke out and then pulled back and closed below the pivot. Barrett Gold. sticker symbol B, new high today, new 52 week high. Let's see what else. Helka mining, HL. Monster energy drink, MNST.

That was a huge monster stock way back when. It was called Hansen's beverage, you know, 2005, six, seven, eight, then they change your name afterwards. But this has been a monster stock, MNST, New High. It showed up on a breakout just a few weeks ago in November, and this stock's been going up as the market's been going down. great way to find relative strength. Current strength, absolute strength, whatever you want to call it.

How is the stock performing relative to its peers and relative to other stocks? An easy way to find that is by finding stocks that are going up while the market goes down. Simple. Next, let's see what else jumps out of me. A few more gold stocks. MPLX, another oil and gas midstream stock. Hit a new high today. Pan American silver, P-A-A-A-A-S.

P-A-A-A-S. Okay, let's see here. Again, these are just 52-week highs. Kinross Gold, K-G-C, new high today. Nomura, N-M-R-M-R-E, it's a Japanese bank. New Core Steel, N-U-E, Steel stocks, I said it was strong. Ross Stores, R-O-S-T, new high today, broke out a few, I think it was last week on the breakouts page.

So again, follow the breakouts, follow the new highs, stay in harm money with the market and not fight it. The area is out of favor? Bye-bye. and focus on what's in favor. Up next, we've got a lot more to cover. I'm Adam Sarhan. This is the one and only investor's edge.

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And welcome once again to Investor's Edge. In case you're just joining us or missed any part of the show, you can go to GaryK.com. You can rewind, fast forward, listen at your convenience anytime you want from any device, all for free on GaryK.com. Right, so a few things here. We spoke about crypto. We spoke about leverage. We spoke about being in harmony with the market, which is harmony with the market.

It's my play on the word harmony. I spoke about the fact that, you know, how do I stay in harmony with the market? I want to be objective, be rational, not get too excited, and focus on position sizing, not get too heavy in one area. I don't want to go crazy into something that potentially could hurt me or get over leveraged if it just does what every publicly traded asset class and market that I've ever observed does, meaning it pulls back and goes through corrections. If I'm too leveraged, I won't be able to sit through those and I'm wiped out. So understanding position size and leverage is really, really, really important.

And then how do I stay in harmony with the market? I always like to say the market is speaking and then ask, are you listening? The market's not literally speaking to us in a verbal sense. It's most communication actually between humans I learned recently was nonverbal. I didn't know that, but it actually is true. So I said, all right, well, the market's nonverbal. It's telling me, how do I listen to the market? Here you go.

First thing I'm looking for is the market above the 50 or below the 50. The market up on volume or down on volume. If I have lots of distribution days, which are big down days on heavy volume, and it goes up on light volume, that tells me subtle sign that the bears are in control. And we're breaking down and below the 50 and all that kind of stuff. All right. The opposite's also true. we have a lot of updates on heavy volume.

Guess what? The bulls are likely in control. And you're above the 50 and you're hitting new highs? Great. And stocks are a lot of breakouts? Great. Probably the bulls are in control. Not always, but most likely.

Now, other things that I look for or watch. So, again, you can get all this on breakouts and setups.com. I look for the number of stocks breaking out compared to the number of stocks breaking down. Today, there was 14 stocks breaking out with 18 stocks. breaking down. On the setups, there's 17 setups, which is decent for tight setups. There's 63 broad setups. I've got 77 large-cap setups, and I've got 88 small and mid-cap setups. Those are healthy numbers. So there's only two or three or five or ten different story. But okay, good amount of setups. So I've got 14 breakouts. I've got 18 breakdowns. Now, movers. Movers up,

Out of all the stocks in the market that are up over 3%, there's 104 stocks that are moving up. The ones that are moving down, ready for this today? 486 down, 104 up. Whoa. That speaks to me. That's how I listen, folks. Stocks gaping up today, I've got four. Net T's, N-T-E-S, E-D-U, New Orian Education, L-E-G, and Hudson, Technos.

technology is HDSN. That's it. Just four stocks gapping up. I've got 40 stocks, 40, gapping down today. I'm not going to mention them all, but you can get them on breakout and setups.com. That's how I listen to the market.

So, yeah, the market today closed, mostly, well, close lower. Dow was down 427 points to 47,289. The S&P 500 was down 36 points to 6812. The NASDAQ closed down about 90 points to 23,000. 275. All right. And the Russell was down 31 points or 1.25% closed at 2004-69. All right. Crypto was where a lot of the selling happened overnight. Bitcoin was down about 5.74% or 5,200 points, closed at 86,087. Or where it is right now. It doesn't really close in a traditional sense, but that's where it is now.

Ethereum was down about 8.19% or 250 points thereabouts to 2781. And a lot of the other ones were down 8, 9%. Doge coin or Dodge coin, whatever that is, down almost 10%. Doge coin is how you pronounce it, Doge. And then Solano was down 9%, so on and so forth. So lots of selling in crypto, selling in stocks. Okay, under the surface, you know, the Dow was down 400, not even 1%, 0.9%. The S&P was down half of 1%.

The NASDAQ was down 0.3%. So it wasn't that bad. But on the surface, I've got 486 movers down. I've got 104 up. Stocks gaping down 40. I've got four gaping up. That speaks volumes. Stocks making 52-week highs.

I've got 92 of them. 52-week lows, I've got 17. So right there, more stocks making new highs than new lows. All-time highs. I've got 29 stocks. All-time lows, I've got six. So new highs, new lows. there's more new highs and there are new lows, more new 52-week highs and all-time highs.

That's good. So again, the major indices, they're right now, they're above the 50. The cues are above the 21 and above the 50. I'm watching those levels going forward. The S&P 500, above the 50 day, above the 21 day. Great. I'm watching those levels going forward. The Dow, above the 21 day, above the 50 day.

I'm watching those levels going forward. If we roll over and break down and do it on volume, then all of a sudden, that correction we saw for most of November or that pullback, not correction, the pullback is going to regain control and take over again really quickly. If not, and we rally and go up, well, guess what?

The bulls are still in control. We're in a bull market, even with all the selling in AI because of the great mini rotation, the markets only, and I'm putting that in air quotes, the NASDAQ 100 is only 3% below an all-time high. That's very strong.

The S&P 500, only one, 0.4% below an all-time high. Again, very strong. So there's pockets of strength here. Even with all the selling in AI and all the panic for most of November, you're almost at new all-time highs in the market. Apple hit a new 52-week high today. Let me double-check that to make sure I'm correct because I just walked away from the screen. Here we go. Apple. Yeah, new high today. So yeah, new 52 week, a new multi-year high. If not new all-time high. Yeah, it looks like a new all-time high. The old high was 260 or 283. Yeah, new all-time high today. So again, Apple's up had a very good day and that's largely defending the market because it's a market weighted. Each stock

has weighted differently in these indices and Apple's got a huge weighting because it's a huge market cap stock. So again, following the market, listening to the market, staying in harmony with the market, not fighting the market. You know, you want to follow it, not fight it. It's a big difference there. And say, listen, I want to prepare. What can happen tomorrow? Nobody knows, but I know for sure it can only go up down or sideways. And then I can prepare. What am I going to do if it goes up? What am I going to do if it goes down? What am I going to do if it goes sideways? Once I'm prepared in all three of those scenarios, I can take a big, side. of relief and breathe and be comfortable. So I believe that's all the time that we have for today.

As always, I want to thank you very much for being here. I believe Gary will back tomorrow. It's an absolute pleasure. I'll speak to everybody again soon. This has been Investor's Edge with Gary Cult Bomb on Biz Talk. 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 CodeCumfort. That's Tommyjohn.com code comfort. Tommy John. Comfort perfected. This message is brought to you by the Capital One Venture X card.

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