Investor's Edge with Gary Kaltbaum - Rally Continues on Wall Street

Episode Date: August 3, 2022

Follow Gary on GaryK.com or http://garykaltbaum.com

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details in the ProDisc or LOS. com, Diagonal Term, subject to I'm going to go. Investors Edge with Gary Coltbaum. Straight talk about you and your money.

Now from the BizTalk Studios, here is Gary Coltbaum. And welcome once again to Investors Edge. I'm Adam Sarhan in for Gary Kaye, who's out today. Today is Wednesday, August 3rd, 2022. We've got a great show for you tonight. As always, we want to thank you very much for being here. As you know, this is a show about you and your money and all of the fun points in between. If you don't get this show in your city, just a little housekeeping before we dive in,

you can go to GaryK.com and listen live or archive. We are live Monday through Friday, 6 to 7 p.m. Eastern. Also at GaryK.com, you can follow Gary on Twitter by just pressing the button. You can subscribe to get his morning notes, ask about his money management services, and or sign up to Convictionleaders.com, which is his member's only website where he basically publishes his thoughts about the market. several times a day, has webcasts in their in-depth market webcasts that are timely, that are on track, and that give you everything you basically need to know. Also on GaryK.com to everyone that's listening here, since he's not in today,

he asked me to let you know that tomorrow morning-ish, you know, our time, he's overseas right now. So tomorrow morning on GaryK.com for free, everything, his thought he's going to publish a market overview, letting you know what his thoughts are on the market. But he did give me some notes. So I'm going to go ahead and read those for you to get those front and center covered. And then we will dive into the rest of it. So he says, after yesterday's decline, the Dow was down big because of Pelosi and China woes, etc., etc. The Dow was about flat for the week.

But the NASDAQ and the NASDAQ types were doing the job and they were barely down yesterday, even in the face of quote unquote bad news. And that was a clue. Today's action is definitely broad-based, meaning most of the market is rallying. It's not just the NASDAQ holding up and tech stocks, except for commodities, which are coming down. But that's okay because the market got hit earlier in the year when commodity prices were going up. Remember, the Fed's fighting inflation. What determines inflation is commodity prices, food and energy, etc.

So when commodity prices go down, that's good for reducing the, the onus, the Fed to raise rates and fight inflation. It's a good news that technology's in the driver's seat right now, even though we can safely tell you earnings from the big tech stocks have not been especially good. I'm adding this part here, but the reactions for the most part have been good, and that's what matters. Gary also says a lot of quote-unquote bad news is out there. Just watch price.

And that is so incredibly important, folks. Just watch price. the perma bears will still will tell you they're going to stay bearish and they'll tell you don't worry about this this and the other thing if the market goes up that's all that we care about is what Gary's saying

what the market is doing remember people are going to be out there and be bullish people can be out there and be bearish focus on what the market is doing there's two things that are happening here there's the what that's happening and there's the why that it's happening we make money and lose money based on what

one thing the price it shows up in your statements, right? The fundamental doesn't show up there. The earnings don't go show up in your statements. The one thing that does is the price. And what is that? That tells you what the market is actually doing. Short term, the market is getting a little frothy. And we can tell you on a short term basis, sentiment has gotten very, very bullish. Put the call ratio is the lowest it's been since March, which basically means nobody's getting, you know, betting heavily on buying puts or on the down, the market can go down. Just something to keep in your file manager. So again, sentiment, the short term, the market had a really big bounce, right? The market's rallied hard off the June lows.

I think the NASDAQ's up 18 to 20 percentish, somewhere in that range. And that's normal for bare market rallies. If this is the beginning of a new bull market, then we'll have some digestion and a lot more time and price. All the major indices are still below their 200 day moving averages, but they're above their 50-day moving averages. So keep that in mind as well. So it's also a good thing to keep in mind that right now, retail stocks are starting to move higher. We don't need to label this as a new bull market or a bear market rally. The only thing that matters is that the major indices remain above their respective 50-day moving average lines. When in the bare market, months ago, remember, during the bare market, as the markets were just getting crushed, 90% of the time, the major indices were below the 50-day moving average.

If anything changes, of course, Gary's going to let you know. And remember, we still have a ton of earnings coming out. Those are Gary's notes. I just wanted to get that out to your front and center. And he will have, if you go to GaryK.com, a full overview on the market posted tomorrow morning, Eastern time, so you'll be able to get it there. And now it's time to dive into the rest of the show and talk about a lot of important things and how to succeed and get ahead and so on and so forth.

forth. A few thoughts here. Number one, it's really tempting for a day like today where the Dow was up 400 points. The S&P 500 was up, let's see, 64 points to 4155. The NASDAQ was up 319 points or over 2.5% to 12,668. The Russell 2000 was up 1.59% or up about 30 points to 1911. To be like, oh my God. or get FOMO. FOMO is fear of missing out. Like the market's up 400 points or the Dow or the NASDAQ, whatever one, it doesn't matter what you want to look at. We're up big. And we've had a really big rally from the June low.

But what's important here, folks, is to do what? It's to put things in perspective. We just had a big rally. In the market, you're either buying early or you're buying late. Sometimes you buy in the middle, but for the most part, you're buying early or you're buying late. If you're earlier the party, that's when the big money's made. But the problem with that, from a practical standpoint, is most of the time conviction is low.

Why? Because the market hasn't proven itself yet. And after a big move up, that's when people get quote-unquote more bullish because the market's up big and they get the FOMO kicking in and so on and so forth. So if this indeed turns into a new bull market and it's not just a bare market rally, there will be many. and I mean many, many, many, many opportunities in front of us of just explosive stocks, breaking out of bases and taking off and going to Pluto or going to the moon. If this is a bear market rally, then what happens? Remember, bear market rallies do what? They suck you in.

They make you feel really good. Don't worry, all the bearish news is over, and then what? they roll right over and hit new lows. Just the way the market works. There's no nefarious, to my knowledge, there's no nefarious entity behind it causing it. It's just human nature, right? People are people are people, right?

People are creatures of habit. They're emotional creatures. It's the premise of my book. If you haven't read it, I've strongly recommended. I wrote it. So it's called Psychological Analysis. You can get it on Amazon or Barnes &lobal.com or whatever, BN.com, wherever you want to go,

wherever books are sold. psychological analysis. It's one of my primary points of the book is to teach you how to make rational, not emotional decisions with your money. It's easier said than done. It's just like losing weight, for example. Everyone knows losing weights, calories in versus calories out, but most people are overweight. Easier said than done. Now, for those of the people that actually pay attention and have the willpower to do it, they're in shape and they're fit and so on and so forth, and it's not a problem. Same thing with the market. when you're aware that you're making emotional decisions, not rational ones, step one. Step two is to take action and quote unquote fix it.

So think about this. You ever buy a stock you don't like? You just hate it, but you buy it anyway? If I could see you, I'd ask everyone to raise your hand if we're in a room together, but I can't see you. So I'm going to assume the answer is no. People buy things they like. Stocks, houses, cars, watches, clothes, clothes. I don't know one person that's bought a house or bought a car or bought a watch or bought a stock

where they absolutely despise it. It just doesn't happen. Now, what are the words I'm using? Like, despise. These are emotional words. So being rational is really, really important. The evidence right now suggests the market's going higher. Simple.

Whether it's a bull market rally or a bear market rally, it doesn't matter. Semantics don't matter. Remember, the what matters. Not the why. Why is something going up or why is something going down? That's what everybody wants to know why. But what shows up in your statement? The what?

Price. Right? Where you entered, where you exit, where the market is now, so on and so forth. And as long as the market stays above the 50 and the action remains healthy, meaning pullbacks are contained, look on a daily chart of the S&P 500 of the NASDAQ for the last just this week. Look at the last two days in the NASDAQ. Tight action, quiet closes. By the way, after a big move up, it's a mini digestion.

They can't even pull it back. That shows you there's underlying demand. It's just the way it is. It's not my rules. It's just understanding the rules of the game, so to speak. So, today I want to cover the important part of what's happening, help you put things in perspective. I'll go through some sectors. I'll go through some leaders. And a whole lot more. But it's really, really important to just step back and just take a breath and understand that there's a lot of opportunities in front of us.

I'm Adam Sarhan. This is the one and only Investor's 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.

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Investment Advisory Services offered through call-bomb capital management. Hi, I'm Dr. Jay Goodman, host of Beyond the Script, the podcast where I sit down with pharmacists to answer the health questions you didn't even know you could ask at the pharmacy counter. In this episode, we are diving into gut health with CVS pharmacist Victoria Motola, who explains why so many of us live with stomach issues we should not accept as normal. A lot of what I see is just like chronic bloating, chronic stomach aches. Like I get a stomach ache every time that I eat.

And it just becomes like a lifestyle where, oh, yeah, you know, I just have a stomachache every day. or I'm constantly feeling like gassy. And all of those things are not something that generally, if you have a healthy gut, you should be living with. So that's when we deep dive. We deep dive into your medication. We deep dive into your OTC medication. And then at that point, we can probably identify something that we can change. Hear the full conversation, plus some fascinating facts about how gut health affects so much more than just your stomach on Beyond the Script, a podcast from CVS Pharmacy and IHeart Radio.

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You bring the fire, APU will fuel the journey. Learn more at APU.appus.edu.edu. 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 anytime you want from any device you want. And that's the beauty of the world we live in today. So I remember I started listening to Gary on the radio back in college. And it just was, you know, every day at a certain time. My kids now, they look at regular TV and like, why would anybody watch all those commercials?

And then skip what you're doing and go into the show and make sure you're in front of the radio at a certain time to catch a show. And that was pretty much it. But anyway, I'm off on a tangent. So let's talk about the market. So the market had a big move up, right? nothing wrong with buying anytime you want, as long as you understand that what we're doing, folks, is it's a combination of risk and reward. We're buying and selling risk all day long.

It could be buying this stock, Apple or Amazon or Netflix or N-phase or video or whatever stock it is. At the end of the day, the transaction is happening is you're risking your money for a potential reward. It's just the way the business is structured. right and it doesn't mean if you get super crazy and risk all your money that's going to lead to a better reward no in fact it's almost likely nine and ten times that's the exact opposite that happens the vast majority of times i mean vast majority of times that does not end up happening where you get too bold up or too crazy on the long side and then too much risk and then you have a little pullback and you can't take it and you stop out, but the market's still fine, and then it goes up without you.

So you end up stopping out, losing money, and then, bam, the market goes without you. So it's really important to understand logical areas of potential support and resistance in the market. And understand you're just trading risk, risk and reward. Are you early in the move or are you late in the move? You know, back in the dot-com crash, the 2000-2 crash in the NASDAQ, I think there were nine bare market rallies that were up. I think 10, 20, 30%, one was up almost a 40% if I'm correct. This one's up about 20 from the lows. So again, keep that in mind as we go forward. This is normal. It happens. It's healthy.

If they have these big snapback rallies. The question going forward is, will this turn into a new bull market? And that's it. We're over. Bear market's over. Or is this another bear market rally? We roll over and fail. time will tell. But for now, the market continues to give us good days after, you know, bullish days after bullish days and we really haven't seen a lot of negative days. But we are extended up here for the most part. So just keep that in mind. So for the S&P 500, you can look at the SPY, which is an ETF that tracks the S&P 500. You have highs back in May near 417 in the SPY. Right now,

Now, we hit a high today of 415. That's the next level in the sand that I'm watching for the S&P 500. Above that, you've got the 200-day moving average near 433. We closed at 414 in the SPY. The NASDAQ 100, the QQ, I'm giving me the ETFs because these are tradable. You can't buy the NASDAQ composite outright or the S&P 500 outright, but you can buy the ETFs. 314-56 was the May high in the... the NASDA, I think the NASDAQ, the QQ.

We close today at 322. So again, 314, we close at 322. We're above that May high. The next level of resistance to watch would be 344, which is a 200-day moving average, in the NASDAQ 100. Maybe you have some highs back in late April. You can look at, which is 330 area. Right now we're at 32.

Yeah, about 330. Let's call 329. 330 and then you've got the 200 day moving average at 344 and feel free to write these down. But again, the short term, the 50 day moving average is at 295. We're at 322. It could easily pull back. Watch the pullbacks. Watch those digestions.

Do we move sideways or do we move down? Remember, there's only two ways a stock or the market can pull back or digest. One, it moves sideways. Two, it goes down after a big move up. We'll see. And if it goes down quiet, small down days, light volume, it's healthy? Great. If we start seeing the market just roll over hard, like what happened in June? Look at June 9th or June 10th or June 13th. The market had rallied at the end of May, hit a high of that 314 in the middle of June, the NASDAQ 100, that is. and then June

let's see it was Monday sorry not Monday it was the 9th June 9th it just sold off hard and by the way volume started picking up on the 10th June 10th gap down sold off hard and closed the lower half of the range

and then again on June 13th the gap down this is the QQQQQ closed and lower half of the range erased all of that that digestion area that I spoke about in late May and early June and it took out the prior low from May, hit a new low in three days time. I don't think this market's going

down to the June low in three days time. I hope it doesn't. But again, that's what I mean by a difference between a healthy pullback and unhealthy pullback. You go up for a few weeks, three, four weeks. You erase all of that and then some in two to three days. That shows you that the sellers are still in control. Now, on the other hand, the healthy pull back, the healthiest option to us right now would be for it to go sideways and just volume dries up and just sit tight and then pulls back. And then when it's ready, it just blasts off. But it digests for a week or two or three or as long, much as it wants. That's the best case scenario. At some point, it goes sideways and just move sideways and just get led some time. Remember,

time and price. Gary talks about this all the time, time and price in the market. The other scenario is that it goes down slightly to digest at some point, and then we'll gauge the health of that pullback. Is it a healthy bullback, meaning it goes down small price declines on life volume, or is it unhealthy, like what happened with these big back-to-back, bam, bam, bam, and they erased the entire move and then hit new lows. So if we get that unhealthy stuff, we'll know it's a odds are going to increase. It's a bare market rally. If it's a healthy one where it goes sideways or it pulls back a little bit, then odds favor, this rally is going to continue at least up until the 200 day, and then we'll revisit. Next, the important thing to look at when you've got the market

with a tailwind here, a bullish tailwind, at least it's in rally mode, is to look under the hood for leadership. What stocks are actually leading the market higher? Do we have fresh stocks breaking out of sound bases? Or are most of the rally caused some stocks that are, bouncing off of 52-week lows. Right now, the vast majority are stocks that are bouncing off of lows. We have a few breakouts that are working, but the vast majority are in these big-cap tech stocks. So we'll keep that in mind.

But up next, I'll talk about some sectors. I'll talk about some stocks. And then I'll talk more. I know you guys like when I talk about that psychological stuff, the psychological analysis stuff. So I'll talk a little bit, sprinkle some more of that in there, some timeless lessons for you to use. I'm Adam Sarhan, and this is the one and only Investors' Edge. Hi, I'm Dr. Jake Goodman, host of Beyond the Script,

the podcast where I sit down with pharmacists to answer the health questions you didn't even know you could ask at the pharmacy counter. In this episode, we are diving into gut health with CVS pharmacist, Victoria Motola, who explains why so many of us live with stomach issues we should not accept as normal. A lot of what I see is just like, chronic bloating, chronic stomach aches. Like, I get a stomach ache every time that I eat.

And it just becomes like a lifestyle where, oh, yeah, you know, I just, I have a stomach kick every day. Or I'm constantly feeling like gassy. And all of those things are not something that generally, if you have a healthy gut, you should be living with. So that's when we deep dive. We deep dive into your medication. We deep dive into your OTC medication.

And then at that point, we can probably identify something that we can change. Hear the full conversation, plus some fascinating facts about how gut health affects so much more than just your stomach on Beyond the Script, a podcast from CVS Pharmacy and IHeartRadio. Listen now wherever you get your podcasts. 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.

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Depending on certain loan attributes, your business loan may be issued by On Deck or Celtic Bank. OnDec does not lend in North Dakota, all loans an amount subject to lender approval. They'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 Coltbaum. It comes highly recommended.

You're going to feel better if you talk to him. And welcome once again to Investors Edge. I'm Adam Sarhan. Gary Kay is out today. In case you missed any part of the show, you can go to GaryK.com. You can listen live or archive. And it's all available for free on GaryK.com. If you want more to dive in deeper and get Gary's thoughts intraday, get in-depth market

webinars, see the stocks that he's watching, look at the market from his point of view, see the market from his point of view with his eyes. you can go to convictionleaders.com, take a free trial, get access to all of the content. It's all available in the members area in the archive section. And dive in deeper. I mean, it's a great tool. I read it. I love to hear what Gary has to say.

I watch his webcasts, listen to radio, and it's a great wealth of knowledge and experience. So, that being said, we spoke about the market. Markets had a big rally, and we're kind of getting a little bit on the extended side here. So that's something to keep in mind. One. Two, let's talk about some sectors. The SMH, which are the semiconductor stocks. Why am I bringing that up?

Because the NASDAQ is dominated by tech, and semiconductors are tech. So let's talk about them. They hit new lows in July. Yep, in July 5th. The NASDAQ hit a low in June. So after the NASDAQ's low, the SMH actually rolled over, hit a new low. But then it reversed. And since then, it went from 189, up to 243 was where it closed today.

That's a big move up. Got back above the 50-day moving average in the SMH on the 19th of July, rallied for two days, and then pulled back for three days before the Fed meeting. Then it gapped up with the market, and then I kept on edging higher the last three or four days since then. It had one down day, but it was, again, barely moved. That's a perfect example of a stock or an ETF in this case that gets above the 50, pulls back into the 50, and then bounces off of it. The one thing that's missing for me with the SMH is volume.

It's been rallying on light volume. But price in my world is first, it's primary. Everything else including volume is secondary. It's just the way that I look at the world. Why? Because price shows up in my statements from the broker and volume does not. So that's why I care about price. So the NASDAQ did the same thing, where the NASDAQ rallied, June 18, it got above the 50,

would close below it. June 19, the NASDAQ closed above the 50, rallied for a few more days, and then pull back. Interestingly enough, the pullback came on light volume, which is a good sign, and then it rallied hard off the 50 on last Wednesday on the 27th when the Fed came out and a lot of people are perceiving the Fed that pivoted because it, commodity prices are coming down. We spoke about that earlier at the beginning of the show and covering Gary's notes. So the more commodity prices come down, the better it is for the stock market because that means inflation's coming down. So semiconductors have had a big move off the lows, but an area that I'm watching. In no particular order, the next area that I'm watching are the financials. X LF. Why? It's the money. The more, the healthier the economy is, the more money

circulates through the banks. Just simple. The weaker the economy is, the less money circulates to the banks. Bank stocks tend to do well when the economic activity is going up and tend to underperform when economic activity is going down.

So, XLF, if you look at this, it's a basket of financial stocks, hit a new low July 14th. So it bottomed with the market in June, in the middle of June, It rallied a little bit, and then it rolled over, hit a new low on July 14th.

At the same time, the NASDAQ, or you won't look at the S&P 500 since the NASDAQ tends to be a little tech-heavy. That day, on the 14th, the S&P 500 is making a higher low. So it hit a low, the SPY on the 17th of June, and then it hit a higher low on the 14th of July. Well, all right, it got back above the 50, the NASDAQ on the 19th. But the XLF stopped going down. It tested that June Lowe and it held. Okay, great.

That June Lowe was 3058. We're right now at 3356. But we're back above the 50. It's not as clean as the SMH. It's not as clean as the NASDAQ. Oh, also, by the way, it's rallying on no volume. Secondary, but it's close, something I'm very closely watching. And what does this mean?

Well, all right. If we can stay above the 50, that's another bullish feather in the market's cap, so to speak. Next, housing, XHB. Similar situation here. Housing stocks have been strong. Mortgage rates, Gary's talked to you about this too, the 10-year yield and all that stuff. Mortgage rates have come down a lot. They overshot on the way up, and now they're just pulling back.

So the low was on the 17th of June, the XHB, the ETF for housing stocks. 5123. Now we're at 6283. The high from May and June was 6338. We kind of broke above there a few days ago, but we pulled back yesterday and we're pulling back-ish a little bit today. But we're still above the 50. The 50-day moving average for the XHB now is around $59.59.09. As long as days above the 50, it could be for me, try in the bottom.

Again, this is a game of tug-of-war, folks. The bears pull one way, the bulls go the other way. The bears pull one way. The bears do their darndest to pull the other way. Sometimes the bears went, sometimes the bulls win. It's just never-ending game. It just continues and continues and continues. So that's an area that I'm watching.

Why? Because housing stocks are very interest rate sensitive. You know, you look at the IYR also if you want a real estate ETF. And housing prices haven't really collapsed on Main Street, but a lot of housing stocks have. I remember back in the summer of 2012, wow, it was 10 years ago. I was on CNBC and I was talking to somebody

who was debating a mortgage broker. And I turned bullish on the housing market. Why? Because housing stocks had bottomed after the O8 crash at the end of 2011 and they were just ripping. They became leaders. And I'm like, okay, I've seen this story before. Housing stocks topped out in 05

and then housing market topped out, you know, seven and then crash in eight. Well, the housing prices kind of, to topped out to, depending on the area of six and seven-ish. But again, housing stocks tend to precede big moves on Main Street. So I got really bullish. And this guy was in the business. He's a mortgage broker. He was super bearish. No, it's not over and so on and so forth. What happened? You know where real estate prices were 10 years ago. You know where real estate prices are now. Just shot up. I was bullish for one reason, one reason only because I listened to the market.

I always like to say the market is speaking and then ask, are you listening? So we're putting the dots together. We're seeing more bullish action show up. On Main Street, housing prices, A, stopped going up, but B, they haven't really collapsed the way, at least corrected the way a lot of these housing stocks have. Some of these housing stocks are down not just 20 or 30%, they're down even more.

So, again, something I'm watching, right? A lot of talk about a recession, not a recession, not a recession, semantics aside, it doesn't matter how you want to find it, two negative quarters or whatever. They can revise it up, who knows. All that matters is price. Housing prices stop going up.

All right, I'm paying attention. But if housing stocks start turning higher and they start going back up, that means that housing prices don't have to come down that much. And if this is indeed a recession, it doesn't matter how it's labeled, It could be a very shallow recession. And there's market precedent for that where you get a dip in the market.

The market goes into a 20%, 25%. The S&P, I think, dropped 25%. The NASDAQ dropped over 30% off the lows. And then bam, it's a shallow recession. Fed stopped. You know, they won the battle against inflation. Inflation starts coming down big time. Fast forward six and 12 months.

And you can be at new highs, assuming that's all those things happen, right? Inflation's done. Fed wins. And bam. They stop raising rates. They could pivot and become more easy money or more doveish and then ban the market's off to the races. Open for anything.

That's our job. Be flexible. The second you put your foot down and stomp and dig your heels in the ground and say, I'm bullish, I'm bearish. Uh-uh. You lose. Because then you start fighting the market. Who do you think is going to win? Me or the market? And take you out of it.

It's me or the market. Of course the market's going to roll right over me like a steamroller. In my early days, ego, I tried to beat the market and fight the market. Not beat it, well, beat it too, but fight it. It's a losing proposition every single time. Instead, now, it's just being in harmony with it. Markets above the 50.

We're starting to see some areas of the market improve. Just take our time. If this is the beginning of a bull, we'll have a lot of opportunities in front of us. Up next, I'll talk about some individual stocks. I'll talk about some earnings, gapers, which are important. And a whole lot more. I want to thank you very much for being here as always and let you know that your biggest winners are in front of us in front of you. It's just the way it works. I'm Adam Sarhan. This is the one and only investor's edge. Hi, I'm Dr. Jake Goodman, host of Beyond the script, the podcast where I sit down with pharmacists to answer the health questions you didn't even know you could ask at the pharmacy counter. In this episode, we are diving into gut health. with CVS pharmacist Victoria Motola,

who explains why so many of us live with stomach issues we should not accept as normal. A lot of what I see is just like chronic bloating, chronic stomach aches. Like I get a stomach ache every time that I eat, and it just becomes like a lifestyle where, oh, yeah, you know, I just, I have a stomachache every day. Or I'm constantly feeling like gassy.

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In case you're just joining us or miss any part of the show, you can go to GaryK.com, listen live or archive. We are live Monday through Friday, 6 or 7 p.m. And available 24-7 on demand for free on GaryK.com. So we spoke about the market, spoke about risk and return, understand. Every element of a trade has an element of risk, element of return. And it's not one to one, meaning you're not going to risk go. If I'm going to get really, really risky and risk a lot, means it's going to make a lot of money on the other side of it.

That's not, there's no correlation there. In fact, people cowboy up, if you will, get really risky. Most of the time it tends to not work. So have a slow, steady, repeatable, methodical, rational approach to investing. And understand it's a marathon, not as strong. print. There's no immediate rush to get to quote unquote first place, meaning I've got to hit a home run right now and make double my money in a day. You know, markets or profits. Folks, I talk about this in the book, psychological analysis. Profits are a function of what? They're a

function of time and compounding, I mean compounding your returns. They call it the eighth miracle of the world, right? It's just it's unbelievable. believably powerful, but it takes time. I mean, it just takes time. So if you don't give it time and you're not patient with yourself and with the market, you're setting yourself up to win or to lose. Think about it. I want to get in the market. I want to win right now. Is that a good approach? Or you get in the market, you take your time. What's a better approach? time use properly can become your biggest friend on wall street time used properly again is it allows returns to compound and compound several times over market works again i don't

make the rules i'm just here to help you share what i've learned along the way so when you think back and you look at the market well i want to talk about a few things here but if you think back and you look at the market and you look back at all the trades you've made, take the time to analyze them and say, oh, was this a good trade or was this a bad trade? And if it was a good trade, why? And if it was a bad trade, why? Doing that work, it's not fun to quote-unquote look at your trades every day or week or month or whatever. But having that process, it's just like somebody wants to lose weight and consistently, you know, does a set up. just slow and steady over time, they're more likely to get the results they want. If you're serious about making money and beating the market and overcoming the, you know,

I call it there's two sides of all of us, the good and evil side, so to speak. The good side I call the superhero inside of us. I've got cartoons in the book. I think the only finance book or investing book with cartoons in it. And then there's a dumb money beast, which is like the Tasmanian devil inside of us. That's just an emotional creature that runs around, that causes chaos, that causes us to make lousy trades, so on and so. forth. To bring out the superhero, it's really important to go out there and say, oh, okay, I've seen this before and or I can beat the market and or do the work. Just think about the bottom line. You want the results? Nobody gets a six-pack by accident. I can use the six-pack because everybody can relate to it, right? So when you're in the zone, so to

you're winning. You're doing well. Things are working out well. Great. Review your trades. You mean you're off or in a funk or the downtrend or whatever word you want to use and things are off by all means. That's fine. Guess what? Still do the work. And if you keep doing the setups, do the work day and day out, day out. You'll notice things about yourself that you probably didn't realize before. It's a discovery process about you. It's a tremendously fun when you realize when you start making those discoveries. So that's the post analysis. It's really, really humbling because you start printing out the charts or you can save them on your computer and just write down the reasons for when you enter. Just print it out.

Here's why I bought it. When you sell it, print it out or save the screens, take a screenshot and write down the reasons why you sold it. Do that 100 times, 200 times over the next few years. You can look back like, wow, I never realized this, that enter a motion here, emotion there, or bias here or bias there. Anyway, let's talk about some stocks. So in earnings that we're in now, we've got a lot of earnings in front of us. stocks gap up or gap down. Or they're muted.

They do nothing. But during earnings season, one of my favorite things to do is to look for strength. Isolate the leaders. How do you do that? Look for the big stocks that gap up on earnings and hit new highs. Shortly thereafter or gap up to new highs. ENPH, big leader, solar stock, gapped up and just continue to rally. Hit new highs.

Good looking stock. Extended up here, but good looking. So that's ENPH. Then you've got, well, let's see here. no particular order, but Netflix rallied on earnings. Didn't gap up, so it's just sitting really tight now, but three weeks, it's kind of on a weekly three-week site, but it's got a lot of overhead resistance. I'll pass on that one.

CMG, Chipotle, gapped up on earnings, rallied back up. The low was 1196 in the stock. The stock is now at 1585. First solar, gapped up, followed through. It's just sitting tight now for the last few days. Again, a little extended. but gww is a ticker stock is w w w granger or granger i'm going to probably butcher the way that's pronounced

the word grain and then g er so however you want to pronounce it ticker symbol i my brain just focuses on tickers gw all right gaps up on earnings look at the explosive earnings take a look at that on a daily chart when you have time by the way it gapped up in november and during this entire bare market it really held that gap. For the most part, 445 was a low that day gaped up on, sorry, it wasn't November. It was the end of October, 1029, 21. Gapped up on earnings. I believe that was an earnings gap. Yep. Earnings were up 25%ish, I think on a year-over-year basis. And then during the market, bare market that we just had, this stock just moved sideways and built the big base on base.

The lower this base was 440. So yeah, gapped up again now hitting new highs. That shows you The good, healthy, there's more, but good healthy accumulation. Tesla, Gary's talked about this, gapped up on earnings, pulled back for a few days, and then bam, off to the races. Now it's near its 200-day moving average. Again, these aren't buys right here, but just something that I look for. Look for the stocks that gap up on earnings. So, I know we're running out of the workshop.

We're out of time. But as always, thank you very much for being here. Go on GaryK.com. Tomorrow, Gary's going to post his market update for you. The market's getting much, much better. Take your time and always hug your wife and your children and your loved ones. Take care, everybody. This has been Investors' Edge with Gary Cult Bomb on BizTalk.

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, 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.apus.edu.

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