Investor's Edge with Gary Kaltbaum - Nvidia's Earnings [08.27.2025 w Adam Sarhan]

Episode Date: August 27, 2025

https://garykaltbaum.com/

Hey, it's Ryan Seacrest for Albertsons and Safeway. It's stockup savings time now through March 31st. Spring in for store-wide deals and earn four times of points. Look for in-store tags to earn on eligible items from Celsius, Body Armor, ORAIDA, Silk, Capri-Sun, Bavarian Meets, and Charmin. Then clip the offer in the app for automatic event-long savings. Stack up those rewards to save even more. Enjoy savings on top of savings when you shop in-store or online for easy drive-up

and go pick up or delivery. Restrictions apply. See website for full terms and conditions. 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, in for Gary Kay, who's out today.

Today is Wednesday, August 27, 2025. And we have a great show for you tonight. As always, I want to thank you very much for being here. housekeeping before we even dive into the show. As you know, Gary's father had passed away on Sunday at three in the morning. He was in one state. Gary was in a different state. Gary woke up at 3.15 and then his brother called him at 6 a.m.

said dad passed away between 3 and 315. That's very powerful. So the funeral was this morning. I went and it was filled with love. Gary's father was in the military. The military was there. And it was a really, really, really just, I mean, heartfelt touching service. Again, if you want to reach out to Gary, send your love, say anything, say hello, say anything.

It's GaryK.com. And his father, Herb lived a great, great, great life. I mean, when you sit back and you look at it and see how much love was in the room, man died at 93 years old, almost 94 years old, lived a phenomenal life. And the word integrity came up multiple times. Love family me familiar was his you know my family was his his his everything his North Star and I love that I absolutely love that so when you have you know I was telling my brother-in-law when I'm in situations like this you know it really does you restart the computer to just really just take a moment

and put everything in the priorities put everything in the proper you know filing cabinet if you will for the short term quote unquote stresses are, it's easy to get caught up in life and it's easy to get, you know, in your head and this, that, and the other thing, I can't believe this person did that and, you know, go down a negative spiral. But these type of events, to me, it's one of the most humbling things ever in life. And it's like restarting that computer where sometimes a computer acts walking, you restart it and it's back to normal. You know, I go, for me at least, it's like a big reset where it's like, okay, pause, smell the roses, realize happiness is a choice, choose

happy. It's like I tell my kids, you know, something happens to you. It's an event. You decide whether that event is how it's going to impact. It's a good event or bad event. However you want to label it, whatever you want, it's your decision. And that empowers you. It takes you out of that victim role into the victor role, which has been a common theme and a story of my life. But really, just want to take a few minutes here and have everyone say, you know, count their blessings and just really, really enjoy the present moment. Even with the market, it's easy to beat yourself up. Oh, I sold the stock and it was up 20 percent and then it goes up 50 or it doubles afterwards. Oh, no, I shouldn't have sold it. Or I sold it at 20 percent. Then it goes down a little bit, then goes

up or I sold it and got stopped out of it, five percent loss and then it doubled without me or whatever the case is. So much. It's so easy to get caught up in your head in this business. It really is. and it's not this doesn't come for me but you listen to these you know big huge motivational speakers or the power you know the personal development folks from jim rome decades ago he's got some great material if you ever want to go on youtube type in jim jim r o hn just great timeless material for personal growth he's a guy who taught tony robbins and tony robin says it you know so many so many other people as well it's you want to get out of your head and the importance of doing that So there's a saying you've got to get out of your head of your dead, not literally dead, but you get out of your head because if you get stuck in your head, you can really drive yourself bonkers.

But take that time, put things in perspective, count your blessings, and do an inventory. You know, where am I in my life? How much more do I want to accomplish? How fast am I going? Am I going too fast? Am I burning out? What can I do differently? So on and so forth.

That, dot, dot, da. So from my standpoint, the ideal scenario is to be able to be like, okay, take that breath. That's a gift. Get down to that granular, right? Wash your hands. Okay, feel the water on my hand. There's a great book on The Miracle of Mindfulness. And it really talks about the miracle of being mindful.

Another great book called The Power of Now, these are some of the books that have really fundamentally made a huge impact on my life. and I've really helped upgrade me. You know, when you upgrade your cell phone, I always say people upgrade the software or whatever it is. Oh, there's a new update. So for me, with all this personal growth and development stuff, I get really passionate about it because it's like upgrading the user,

me being the user. And I can see how it would change my life and change countless millions and millions of people's lives. And one nugget of wisdom can really have that impact. But the idea is that a situation where a lot of life, It's not only the greatest gift. It's a blessing irrespective of your beliefs. It's like, okay, there's an opportunity to really be grateful. And this is a moment of just gratitude.

And that gratitude is like a wave, like a tsunami. Once you really tap into that emotion, it really, like it's, when you smile and it's a genuine smile, you can't frown. Literally can't do it. It's so incredibly powerful walking around and just smiling and look at the impact. Do that for a day. Do it for a week and see how you feel, the impact on you and every other human around you. Even people that are in a crummy mood, if you're just walking in a supermarket and you're smiling. But general, like a genuine smile, it's infectious.

People smile back. They get happy. You could just see their energy that they, oh, what, what? it almost like snaps them out of whatever loop there on unconscious loop and it brings him into the present moment. You know, I have a, I was, there's a story, personal story. I was playing with my son years ago and he was three years old or something like that. We were playing ball and I was upset about some nonsense that happened to me.

I lost a big client or whatever it was at work. And he of course had no idea. It's three-year-old. What three-year-old is going to know? We're having a catch. Just throwing the ball back and forth. And he paused as he holds the ball. He looks at me and he goes, Daddy, happy.

face. I was like, oh my goodness, that was just, I mean, talk about a punch in the gut or a slap in the face, or whatever the case is, like, whoa, wow. And that really, you know, hit me hard type of a thing, that really woke me up. And years later, I was very blessed to be in a position where I can help other folks and help other people. I've always done that since I, you know, was younger. I set up a foundation just recently called the Happy Face Project. And the website's happyfaceproject.org. and literally named it happy face after what happened. And it's like, okay, happiness is a choice. We're teaching people life skills.

They don't learn in the classroom and doing some other stuff. But to me, it's remarkable how powerful that happy face is. And even during a funeral where it's a complete reset to my world and for me, at least, I can just speak for my own personal experience whenever I'm at a funeral. Talk about the, you know, humbling you and bringing you back to the moment. and helps you do inventory snap out of the unconscious patterns or the auto loop that's causing you to drive yourself nuts or take you out of the moment or whatever the case is and just really shift back into that attitude of gratitude.

And that gratitude really trumps everything else. To me, that's one of the most powerful forces in the universe. And it's free. And you can do it at any time just by smile. It is so powerful. All right. That was my morning so far. So that's one thing.

It's a beautiful day. And it was a excellent service. And it was a really, really, really fantastic event from a celebration of life. Of course, you can choose how you look at it. Obviously, it's sad. The man had passed everybody was suffering towards the end. So just heartfelt everything to Gary, his family. And may his father rest in peace.

So, okay, that's out. Now we can talk about this show. We've got a lot to cover. Had some good comments come in. Thank you, everybody, for reaching out to me saying they enjoyed the content over the last few days. A lot of the stuff that I do is evergreen, meaning I share timeless lessons with you that can be applied in any market. Because I'm not on every day like Gary. So when I'm on, I try to just put things in perspective, share some things with you that you can use.

Nuggets of wisdom or help you with structure like I mentioned the other day. If you haven't listened to yesterday's show or Monday show, you can go back and listen again for free on any device. It's on GaryK.com and take notes and send me what you like. What you don't like also. I'd like to hear everything because really I'd like to improve. I'm one of those guys where it's like, okay, I welcome the feedback, positive criticism. You know, like Gary says, B-9s, but anything you want to share, any way I can improve, I can give you more value. I'm happy to do it.

So that's all that. Okay, next, what else did I want to share? Okay, when we look at it's after the close today, we have Navidia. Navidia is the darling of AI stocks. That's going to be a big mover for today. Then tomorrow we have QDP, the second revision, the estimate, not the revision. And then on Friday we have the E gauge gauge. And that matters because remember the Fed has a dual mandate, fight, you know, keep inflation near 2% and do its best to make sure unemployment stays low and jobs are being created.

So most all year up until August, jobs were strong and inflation was above 2%. So the Fed's like, I'm not going to cut. And then in August, if jobs report came out weaker than expected, the last two jobs reports were revised lower. Okay, maybe now we can start cutting. And that's what we found out last Friday and that changed the dynamic. So we'll see what happens on Friday with the PCE. All right. Up next, we've got a lot more to cover.

I'll talk markets and economics and a whole lot more. I'm Adam Sarhan. I want to thank you very much for being here. 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. 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 complementary portfolio review. The number to call is 888-4-22-5-5-5-5. That's 888422-5-5-9. That's 888-4-22-5-5-9. Investment Advisory Services offered through call-bomb capital management.

Hello, hello. I'm Malcolm Gladwell, host of Smart Talks with IBM. I recently spoke with IBM's new director of research, Jake Mbata. We discussed his vision for the future of quantum computing. At IBM research, what we always do is answer. what is the future of computing, whether it's coming up with new algorithms, coming up with better AI, coming up with quantum, or coming up with just how do different accelerators go together. It's our DNA to answer the question of what is the future.

Isn't it a perfect problem for IBM because you kind of need to have a legacy of building stuff? Yes. Building actual physical machines. Yeah, it's why I came to IBM. I wanted the experience, the culture of, of building hard things that others have not done before. Where do you imagine we are in the timeline of this technology? There will come a point when it will mature.

Right? Yeah. My cell phone is a mature technology at this point. How far are we from that point with Conton? By 2029, we'll build the first fault-tolerant quantum computer. That is one that can run a very, very large, large problem. To learn how IBM is building the future of computer, computing, visit IBM.com slash quantum.

Success starts with your drive, and American Public University is here to fuel it. With affordable tuition and over 200 flexible online programs, APU helps you gain the skills and confidence to move forward. Whether you're changing careers, starting fresh, or pursuing a lifelong passion, our programs are designed for people who never stop. You bring the fire, APU will fuel the journey. Learn more at APU. P-US. Hey, it's Ryan Seacrest for Albertsons and Safeway. It's stock up savings time now through March 31st.

Spring in for store-wide deals and earn four times of points. Look for in-store tags to earn on eligible items from Celsius, body armor, or Ida, silk, Capri-Sun, Bavarian Meets, and Charmin. Then clip the offer in the app for automatic event-long savings. Stack up those rewards to save even more. Enjoy savings on top of savings when you shop in-store or online for easy drive-up and go pick up for delivery. Restrictions apply. See website for full terms and conditions. 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 GaryK.com, listen live or archive. We're live Monday through Friday, 6 to 7 p.m. Eastern. Also at GaryK.com, you can follow Gary on X, formerly known as Twitter. You can subscribe, get Gary's morning notes sent to your inbox for free every day. You can listen to the radio shows at your leisure 24-7.

Or if you want to join Gary's premium service, you can click on Convictionleaders.com. That's convictionleaders.com. And get his intraday updates, his daily market webcasts. and weekend webcasts and so much more. All of that's available at Convictionleaders.com. I am traveling. We had the funeral this morning. So in case the audio isn't 100% clear,

I just want to apologize in advance. Number two, I can't control too much of it. But I was saying the PCE, it's a Fed's inflation gauge is coming out before Friday's open. So I hope the rest of the show is good. If not, please bear with us. We are doing our best to give you excellent.

excellent audio and excellent coverage. All right. So we spoke about Navidia's earnings are coming out after the close. After hours, you know, you could see big moves up or down. Really what I want to pay attention to do is where's Navidia and it closed? Not tomorrow on Thursday, but actually where's going to close on Friday? Because to me, that's going to be a really big deal. Navidia currently makes up approximately 8% of the S&P 500.

Right now we are, that's one of the biggest stocks in the year. the S&P, by the way. So that's one. Two, decades ago, I'm talking 50s, 60s, 70, even before that 1950s, 60s, you know, GM was one of the biggest stocks in the market. Was it GE? I think of both of them were really big. And there was an expression, what's good for GM is good for America. As I'm coming to think about it, it might have been what's good for GE. But either way, what's good for, I'm going to call it GM is good for America. All right, maybe it was GM and then GE. Decades ago, 20 years ago, in the early 2000s, well, the first really 2000, I'd say all the way to 2018, 2020-ish, Apple was the institutional sweetheart or institutional darling. And what was good for Apple, I used to write this in my reports, day in, day out, or week in week out, as Apple continued to just dominate, was good for the market.

And now it's Nvidia. And this is normal. You see this happen cycle after cycle. You know, GM did automobiles. at a time, automobile was a huge disruptive force in the industry, in the economy. Remember, the market, it's just a mirror. Another great line from the personal development stuff I just heard the other day is the mirror can't smile until you smile first. So powerful. So, but once you smile, the mirror has no choice but to smile. It's a parallel for the world, the universe,

however you want to do it. So going back to the Nvidia, AI currently is that huge disruptive force that is fundamentally changing the way humans live and conduct business, personally, professionally, so on and so forth. And Navidia is one of the primary beneficiaries of that huge AI boom. All right, they make the chips for AI. So it doesn't matter you're using chat GPT, you're using perplexity, using GROC, whatever. They pretty much all run on Navidia's chips. Not all of them, all of them, but most of them, let's put it that way.

So, Navidia is the primary beneficiary there. So now my saying, this is not official, but I just say what's good for Navidia is good for the market because it's good for America, it's good for the market, because if Navidia gaps up big after earnings, that's going to be really bullish. If it gets crushed and gaps down after earnings, even if earnings are strong, but the company could lower guidance, anything can happen to cause the stock to move big, because since there's so much anticipation, that's not going to be good for the market. Again, all things being equal.

If they report another blowout quarter, I don't have the exact number in front of me, but I know for sure the last few quarters have just been blowout numbers. I mean, just blew away analyst estimates, blew away. So right now we're in a situation where the market is strong. We have Navidia coming out. No, it's not the be-all end-all. There's a chance that video goes down a little bit. It's not a huge gap down.

and then it just recovers and goes right back up again. We see that happen time and time again, but all things being equal, big strong gap up would be very, very bullish, a big gap down, not so much. Why? Because again, the market's a mirror of the economy. An AI right now is the engine, the driving engine, that disruptive force.

It is the big thing, the big catalyst. When Chad GPT came out, that little bear market we had from 2021, really 2022 ended. and the market bottomed and then huge. And one of the biggest winners since then is Navidia. And again, we'll see if that's going to continue or if this AI situation is going to slow down a little bit. We'll see. Pallantier reported earnings and they're a big AI company as well.

A few weeks ago, they gapped up, had a huge move after earnings. So again, we'll see what happens with Navidia. Not all the AI stocks gap up and run, but a lot of them do. That's just putting that out there for some perspective. But again, the immediate reaction after hours, I'm not even going to touch it. I'm going to wait. I'm going to wait. Let the market decide how it trades tomorrow and then how is it trade for the week.

And then on Friday, I'm going to look at the weekly bar for Navidia. Up or down? Really simple. Why? Because that's going to tell me where the market, most of the participants, you know, what they're voting, what they believe, what they're doing. when you look at after hours, it's a very thin market. Lots of time you see big moves one way up or down in the after hours. And the very next day, almost like that move gone or erased or whatever.

So for me, I like to give it time because even 24 hours one day, sure, the next day, 48 hours later, two trading days. Okay, that gives people time to do whatever it is that they want to do. Some people step in there and they buy. It goes down a little bit, it's a small gap down. Boom, they'll buy it and shoot it right back up. And sometimes they don't do that. So again, just want to put that out there, spend a few minutes talking about Navidia and AI and the possible ramifications for it.

Watch a semiconductor index, the SMH. That's going to be important because Navidia is one of the biggest semiconductor, the biggest semiconductor stock out there. Lots of other semiconductor stocks could move in sympathy. In other news, Trump announced that he's took 10% stake in Intel and he's looking into other companies. I wouldn't be surprised to say, hey, we're taking a 10% stake in Navidia. or enter any other big company or companies that you want. Even if the numbers go down, then something like that happens, okay, that counteracts the numbers. Like if the market goes down after earnings and then Trump announces a 10% stake,

oh, okay, well, a 10% stake from the U.S. government is pretty powerful, more powerful than one week a quarter or whatever ends up happening. So we'll see how that plays out. But again, just putting the cards in the table and, of course, you pick up whichever card you feels best for you. All right. So that's Navidia. What other news that I want to cover? Cook. So not Tim Cook from Apple, but Cook from the Fed. Trump mentioned that she's fired because there's possible mortgage fraud going on or allegations of fraud. The Fed came back and said, okay, prove it. We need to see proof because we can't just fire people without evidence. And then she's, I believe, suing, I don't know if it's Trump or the administration, but she countersued all that drama. He's, Trump's trying to put more people on the Fed. So we can have to have. more influence in the Fed, understood. But really what happens is it's not really relevant for the market until it matters. Right now, it's just theater. It's headlines. Okay, she's still in

office, to my knowledge. That might change. Maybe she's removed, but she's still in office. So up next, again, I want to see the market. Does the market move it? Up Next, we've got a lot more to cover. I'm Adam Sarhan. This is the one-and-on-a-ean investor's edge. Hello, hello. I'm Malcolm Gladwell, host of Smart Talks with IBM. I recently spoke with IBM's new director of research, Jake Mbata. We discussed his vision for the future of quantum computing. At IBM research, what we always do is answer what is the future of computing, whether it's coming up with new algorithms, coming up with better AI, coming up with quantum, or coming up with just how do different accelerators go together?

It's our DNA to answer the question of what is the future. Isn't it a perfect problem for IBM because you kind of need to have a legacy of building stuff? Yes. Building actual physical machines. Yeah, it's why I came to IBM. I wanted the experience, the culture of building hard things that others have not done before.

Where do you imagine we are in the timeline of this technology? There will come a point when it will mature. Right? Yeah. My cell phone is a mature technology at this point. How far are we from that point with Quantum? By 2029, we'll build the first fault-tolerant quantum computer. That is one that can run a very, very large, large problem.

To learn how IBM is building the future of computing, visit IBM.com slash quantum. Success starts with your drive. An American Public University is here to feature. it. With affordable tuition and over 200 flexible online programs, APU helps you gain the skills and confidence to move forward. Whether you're changing careers, starting fresh, or pursuing a lifelong passion, our programs are designed for people who never stop. You bring the fire, APU will fuel the journey. Learn more at APU.apus.edu. Hey, it's Ryan Seacrest for Albertsons and Safeway. It's Stockup Savings Time, now through March

31st. Spring in for store-wide deals and earn four times of points. Look for in-store tags to earn on eligible items from Celsius, Body Armor, ORA-Ida, Silk, Capri-San, Bavarian Meets, and Charmin. Then clip the offer in the app for automatic event-long savings. Stack up those rewards to save even more. Enjoy savings on top of savings when you shop in-store or online for easy drive-up and go pick-up or delivery. Restrictions apply. See website for full terms and conditions. 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. 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 just any part of the show, you can go to GaryK.com. Rewind, fast forward, record at your leisure anytime you want. Well, not record, but listen to the recording anytime you want on any device for free on GaryK.com.

All right. things to keep in mind here as we move forward. Spoke about Navidia after the close. That's a big deal. Spoke about the Fed and the drama there between Trump and the Fed and all that fun stuff. We'll see what happens there. I want to speak to you about these small caps for a little bit and the large caps too. So year to date, one of the best ways people ask me all the time, what's stronger?

What's this? What's that? What I want to do is I want to just look at performance. I want to look at the performance of the market and say, okay, what's leading? what's lagging. Really, it's that simple. So when you look at performance of the NASDAQ 100, I believe, well, this was my morning report that stats, it might have changed just a little bit, but the NASDAQ 100, the QQ's up about 12% year to date. The Russell 2000 is up about half that. And just a few weeks ago before last Friday's big rally in the Russell, the IWM, it was pretty much flat for the

year up maybe one or two percent. Big underperformance. And then the Fed came out on Friday, said, hey, we're going to cut. And then a lot of money rotated into these small and mid-cap stocks, the MDY is an ETF that tracks the S&P 400. And they started to wake up a little bit on Friday. Monday they were quiet, a little profit taking a little pullback here in the Russell on Monday, which is normal after a big move up. And then Tuesday it was a little bit. up and now Wednesday up as well, which is a good sign because that's some follow-through to the upside, some continuation after Friday's rally. A little pullback initially, but then a rally afterwards. So when you look at the Fed and you look at big moves, you know, catalysts.

That's the word of the day today, I guess in my mind's eye, is earnings catalyst or things happen where there's a catalyst. What happens after? the market has to readjust. So when the Fed hasn't raised rates for a long time, think of a basketball underwater, those small cap stocks and the mid-cap stocks are really impacted. They're a lot more sensitive to interest rates than large caps, just by the nature of the way they do business and how interest rates impact them, so on and so forth.

And the economy, the impact on the economy and so on and so forth. So when the Fed hints at cutting rates, well, all of a sudden, we're going to go to a lower interest rate environment. The Fed didn't say they're going to zero. The Fed just said, hey, we're going to cut rates. How much are they going to cut? How fast are they going to cut? Big question mark.

We don't know. The Fed's data dependent, folks. They told us this year after year after year after year, after year after year after year after year. I listen. This is what I do for a living. But, you know, the Fed's data dependent. The Fed doesn't know how fast it's going to cut where rates are going to be in six months or 12.

months. They have no idea. And that's okay. They don't have to know, but they're data dependent. So we'll continue to analyze the data, look at the data, and then make the next best decision. And when the facts change, we change. Just that simple. Lord Kane said that years ago, the famous economist. So who could benefit when you look around the environment, the economy, what areas of the economy can benefit the most from a rate cut? So we said the small caps, the IWM, midcaps, M-D-Y, both rallied nicely on Friday. Housing stocks, there's the XHB, the housing ETF, tracks a basket of housing stocks, had a huge move on Friday, and since then, very quiet, on light volume.

All right, not the end of the world, but just quiet. Why? Because if mortgage rates come down, they're already starting to come down, but if they keep coming down, that's going to increase demand. for houses because more people can afford to buy houses. Remember, economics 101. What determines the price of anything in a free market? Simple. Supply and demand. So as demand increases, supply stays relatively same. Still home builders are building homes, but supply is not going to double or triple. Demand increases as mortgage rates go down. Guess what? Supply, the price goes up. Simple.

That can benefit home builders. They can price their houses at a higher price. Or what other areas could benefit in a lower interest rate environment. Let's take a look. Well, how about the financials? The small and regional banks, I've noticed the theme here, small and mid-caps, small and regional banks, KRE, had a huge move on Friday, very quiet on Monday, rally Tuesday, up again today. Big money's flowing into these small regional banks. The KRE is an ETF that tracks the small and regional banks. Same thing with the XLF, the financials. Well, Adam, don't the banks make more money when interest rates are up, so on and so forth?

Yeah, but, there's always a butt. The economy, when Fed cuts rates, that stimulates economic activity, meaning more the economy gets stronger. The stronger the economy is, the more money flows around the economy. The more people need loans, the more money the more money the banks can make. I mean, just in simplest terms, the stronger, healthy economy, banks make more money. So a lot of money now in anticipation of that Fed cut is moving into the financials. The XLF is a big ETF that tracks a big bank with the big financials.

And the KRE are the regional banks, both up big since last Friday. Again, like Gary says, the changing of the guard, the complexion changes. When the facts change, we change, right? Look for the catalysts. cutting rates is a huge catalyst. Next, let's look at some other areas of the market. Well, if the economy might get stronger, who else can benefit? Maybe the transportation stocks, the IYT, had a big move on Friday, but hasn't really gone

anywhere since. Similar to the housing. They had a big move Friday, and that kind of building a little handle here, consolidation, a quiet, you know, move sideways, whatever the case may be, it hasn't really moved a lot. Since then. But that's okay. It's normal. You see a big move up and then what happens?

The market goes sideways and then you can see another move up afterwards. After that consolidation runs its course. So when you have a situation where you rally hard the day of the catalyst and then you go quiet sideways for a few days, not the end of the world, especially if it follows through with a higher price or more upside afterwards. So that's more or less putting, again, looking at the areas that could benefit. There are other areas, I'll get to them also, but not all the areas are going to go straight up. Some of them actually fall because, again, it's not really, it's not a bad thing.

It's just investors, especially big ones, have to reprice their positions, reprice their analysis. They just adjust their pricing and adjust what they're going to pay for certain things. Maybe they adjust their allocations. Hey, we're under allocated and under exposed to small caps. Let's move some money into small caps and take it out of whatever the case may be, some other area. So the big caps continue to benefit too. QQQ is up nicely on Friday, has been nice and tight since. Because the economy is going to get stronger.

More people are buying chips or benefits big tech. Great. More money flown around tends to go to big tech. The S&P 500, the SPY, another area doing very, very. well. Rallied nicely on Friday, quiet on Monday, up Tuesday and Wednesday, or just, you know, quiet action sense. I don't see a lot of selling. And even volume has been quiet. We have GDP tomorrow. We have, you know, the Fed inflation thing on Friday. But for now, all right, Fed's going to cut rates. The paradigm changes. And when the, by the way, when things happen in the market, they happen quickly.

Why? Because investors move fast. They don't waste time. The big ones. A lot of these things are thought out in advance. You game it, so to speak, the gamification. It's like, okay, if the market's, if the Fed's going to cut, this may happen. Here's a hypothesis. The Fed goes, if rates don't cut, here's what's going to happen. If Fed increases rates, here's what's going to happen. It's an intellectual thought process. It's not a game, but you just outline this, you know, the three, possible scenarios and then your hypothesis is like a scientist. How do you think the market's going to react? And then you test your hypothesis against what actually happens. Oh, I was wrong here. I was right there. Okay, let me adjust my analysis because the next time this happens, I want to be prepared. And then adjust and adjust and adjust and adjust. So I hope all this is helpful because as we look through, if we're entering a new paradigm here where the Fed's going to cut, they can keep cutting for a very long time. They can go slow and steady and cut for the next six to 12 months or 18 months or 24 months or 36 months.

Who knows? It's all data dependent. Or they can get really aggressive, which I doubt they'll do, but they can cut really aggressively and then be done. Or they can do one cut, one and done and be done. One cut, wait a little bit, then cut again. Again, all based on incoming data. Strongly recommend folks, is filter out that noise and just focus on.

the facts. Where do the numbers tell us? Up next, we've got a lot more to cover. I'm Adam Sarhan. This is the one and only investors' edge. Hello, hello. I'm Malcolm Gladwell, host of the podcast, Smart Talks with IBM. I recently sat down with IBM's chairman and CEO, Arvin Krishna. And I asked him, how can companies use AI to its fullest potential to create smarter business? My one advice to them. Pick areas you can scale. Don't pick the shiny little toys on the side. For example. If anybody has more than 10% of what they had for customer service 10 years ago, they're already five years behind it. If anybody is not using AI to make their developers who write software 30% more productive today, with the goal of being 70% more productive,

Yeah. Wow. So we are not asking our clients to be the first experiment on it. We say you can leverage what we did. We are happy to bring out all our learnings, including what needs to change in the process, because the biggest change is not technology, is getting people to accept that there's a different way to do things. To listen to the full conversation,

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Restrictions apply. See website for full terms and conditions. You're listening to. What are we waiting for? Well, what are you waiting for? One, two, ready, go. Action! Investors Edge with Gary Culpa. And welcome once again to Investors Edge.

In case you're just joining us, almost any part of the show, you can go to GaryK.com, rewind, fast forward, listen at your convenience 24-7 anytime you want from any device. All right. So one of the questions I'm frequently asked, Adam, is as catalysts, how do we know when there's something changes for the stock or for an individual stock? Well, the way you know is you look at it and you say, okay, does we see abnormal price or volume action? Think of the concept of resistance and support. In case you don't know, think of, like I'd say, a stock goes between 50 and 60 for six months. Every time it gets near 60, it falls. It gets near 50.

it rallies. So in that case, resistance would be a ceiling near 60, and support would be a floor near 50. All right. One day explodes higher. It's called a breakout above 60 on heavy volume, four or five times average volume. That tells you Aunt Mary and Uncle Bob, like Gary says, is not doing the buying. It's the big institutions. That's something changed. That's a catalyst. So breakouts. It's a website called breakouts and setups.com. So breakouts and setups.com. I recently launched it and it helps people find breakouts because it's one of the most common questions I'm asked all the time Adam how do I find breakouts here you go I'll give you a bunch now that showed up on that list MDB MongoDB today and again these are not buy ideas folks do your own homework everything's

general in nature so on and so forth no investment advice and every other disclaimer under the sun but here are just stocks breaking out today MongoDB huge move up 35% on earnings earnings are up 43% sales are up 24%. Next on the list. PSNY. This is Polestar Auto, UK, 3.1 million shares. Yeah, auto manufacturer. Okay, I don't know exactly what they do.

I'll look into it later. NCNO, Encino provides cloud-based software solutions to banks and financial institutions. Little breakout there above a multi-month high. And there's different types of breakouts to an all-time high to a 52-week. Kai to a multi-month high. But here are some of them that showed up. A-H-L, Aspen Insurance Holdings, newer IPO gap-gapping up today, huge gap-up. Gapped up a few days ago and then gapped up again today. Big volume. Good action there. Stitch fix, ticker symbol S-F-I-X. Good action there. Sig. Signant Jewelers. S-I-G is a ticker there. Big gap away, sorry, big gap there,

not a breakaway gap, but a big gap. Interesting enough, they report in six days. So it's interesting to see that gap up today before earnings, but maybe there's some other news. I can check it later. UGP, Ultrapar part. It's a Brazilian oil and gas company. I mentioned to you a few days ago, oil and gas stocks are starting to wake up again from a long slumber. This is a little breakout here in UGP is a ticker ultrapar. Good EPS ratings 91, composite 70. Relative strength is weaker, but could be waking up again. Here's another oil and gas stock. Magnolia Oil and Gas, ticker symbol M-G-Y.

Good breakout there. The group is weak, but a little breakout there. Bank of Oz-K, it's Bank of Ozarks, ticker symbol is OZK, edging up. Today we mentioned the regional banks and the big banks, and here you go. Here's a regional bank that's setting up and actually breaking out, not just setting up. STNGG, oil and gas transportation pipeline stock, Scorpio tankers. SSB, here's another small and regional bank.

It's a Southeast bank. South State is a company. SSB, a nice little breakout here. Bread financial finance credit card payment company, B, F as in Frank, H as and Harry. Next, CM. This is CDN Imperial Bank. It's a foreign bank. And does wealth management, does normal banking activities,

is breaking out today on volume. If you want to look what a breakout is, you can see it. CM is a ticker. They report, I believe, tomorrow, so watch earnings there. Hudson Technology, HDSN, pollution control company, breaking out above $10 today. Oh, let's see, skip that one. MGM Resorts.

This is a gambling, leisure company. Breaking out, 3929 was a recent high. You're at 3929 right now. H-BAN, well, It can change by the time you listen to this. But HBAN, Huntington Bank shares, another super regional bank. It's a regional bank. HBan is a company there.

City Group, big financial. Remember I said the XLF and the KRE, big financial city group breaking out today. All right. Let's see, RCL, World Caribbean breaking out. Conoco Phillips, another oil and gas stocks, COP, breaking out. Once I start seeing multiple stocks in the same group break out, I know money's flowing into that group. TD Bank, ticker symbol, TD, Toronto Dominion Bank. Nice breakout above 7558 today. NBIX, this is neurocrime biosciences. This is a biotech company. Little breakout there.

WinTrust Financial Bank Midwest, WTFC. All this is available on breakouts and setups.com. Ford, ticker symbol F, little breakout there, trying to break out right near resistance. E-X-T-R Extreme Networks, little breakout there. Let's see what else can I give you in the last few minutes here as a wrap up. Stiefel Financial, S-F, right near its pivot point. Let's see, Enva International, provides lending the customers across the U.S. and Brazil, finance, consumer loan company, breaking out. A little breakout there. But that's what I do is, okay, here's a bunch of breakouts.

I don't know how many I had probably 20, 25 we went through. I didn't count, but somewhere in that area. Went through it in a few minutes. Okay, these now have my attention. I'm not going to go buy them, just blindly just because they're breaking out, but I'll do some more research. It's just a way of filtering out the noise. Okay, here's the market speaking to me.

These stocks are breaking out. Now, which ones are breaking out on volume? Which ones are not breaking out on volume? When I go deeper, let's look at the earnings. Let's look at average daily volume. Is the stock liquid? Is it illiquid? You know, something like Citigroup, average volume there is 50.

15.3 million shares. That's a liquid stock. Okay, it has my attention. I want to see volume today and see where volume ends up and see how much volume is. And if it's a light volume breakout, that's fine. Breakouts come in all different shapes in science. Sometimes volume shows up after the breakout. Sometimes it's a day of the breakout. I love it when it's a day of the breakup, but sometimes it takes time. And sometimes it rallies without the volume. And I miss it. And it breaks out with volume and I miss it. I'm human. I'm not going to catch them all. And that's okay. You don't need to catch them all. It'd be nice if we could, but we don't need to. And that folks is a super, super, super, super important thing to keep in mind. Because if you get stuck

caught up in your head, I have to catch every breakout, I have to catch every breakout, I have to catch every breakout, you drive yourself bonkers. But if you realize, hey, I don't have to catch every breakout, oh, okay, I can actually function without catching every breakout. All of a sudden, you can breathe a big sigh of relief. All right. I hope that's helpful. Everybody in enjoy the moment. Like Gary says, hug your children, be happy, smile in the mirror. High five yourself, like Mel Robbins says. This has been an absolute pleasure. I don't know if Gary be back tomorrow or not, but this has been a fantastic pleasure. Thank you, everybody, for having me. Have a great evening, and I'll speak to you again. This has been Investors Edge with Gary

Coltbaum on Biz Talk. To listen to past episodes or to get in contact with Gary, go to GaryK.com. That's GaryK.com. Success starts with your drive. An American Public University is here to fuel it. With affordable tuition and over 200 flexible online programs, APU helps you gain the skills and confidence to move forward. Whether you're changing careers, starting fresh, or pursuing a lifelong passion, our programs are designed for people who never stop. You bring the fire, APU will fuel the journey.

Learn more at APU.apus.edu. Hey, it's Ryan Seacrest for Albertson's End Safeway. It's stock up savings time now through March 31st. Spring in for store-wide deals and earn four times of points. Look for in-store tags to earn on eligible items from Celsius, Body Armor, Aida, Silk, Capri-Sung, Bavarian Meets, and Charmin. Then clip the offer in the app for automatic event-long savings. Stack up those rewards to save even more.

Enjoy savings on top of savings when you shop in-store or online for easy drive-up and go pick-up or delivery. Restrictions apply. See website for full terms and conditions.