Investor's Edge with Gary Kaltbaum - Rotation [07.16.2026]

Episode Date: July 16, 2026

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Investor's 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 Gary Colbom, your host. A thanks of being with us today. Glad you here, ladies and gentlemen, happy that you are listening. It is July 16th.

It's Thursday. It's 2026. I still can't believe it's 2006. And we have a lot to talk about. serious talk on everything that affects you. The markets, the economy, your job, your industry, the Morlocks in D.C., and whatever else. And if you do not get this radio show in your city, we'll post it at garyk.com also on our X feed. If you don't follow us on X, put our name in.

If you'd like to email us, just be nice. If you like Hamas or you're a racist and you like terrorism, we won't get along. All right. So what we think we do here is guide. And we always say to you that in a world of Wall Street, where they constantly have buy recommendations and touting and shouting and shouting, our job is to alert when we believe there's trouble. We feel it's our job to state to you what to avoid when things go awry.

We will also obviously tell you what's working. Also, where the leadership is, if anything's emerging, that too. but on occasions it's all about what to avoid and we have harped incessantly on the frothy areas we yapped about them again yesterday the no sales or hardly any sales quantum computing and drones and rare earth and nuclear and all that crap. And we told you yesterday that they are just getting blown apart. We warned you about the SpaceX and the valuation, not the company, but the valuation, and the space stocks that they told you how to own because SpaceX is valuation.

And in the past, I don't know how to own. how many weeks we have harped upon the topping action and the worsening action in the semiconductors slash artificial intelligence names. And we always say to you when we see something happening, whether it's going up or going down, our canned line is. we have no idea how long it lasts or how far it goes. We are not like others on Wall Street that amazingly will give you targets. My favorite thing is when somebody will come out and say,

well, we think we're going to rally for the next two months, but then we're going to drop into Thanksgiving, but then finish off with a rousing rally into the end of the new year. end of the year. Always amazed. But we also know about excessive valuations, and we're always wary of that. And yesterday we reported to you, number one,

that they were really kicking those frothy areas in the teeth, even more. Even though they were down 50, 60, something 70% they were going into what we call the death drops we call it the slow bleed and we're just letting you know

amazingly again today they are just bombing these areas just get us out amazing I'm actually amazed so our warning shot on those areas remains

we know there are people out there trying to tout you on them, they're probably stuck in them. Unfortunately, and this is not a rip on them, but unfortunately the president keeps announcing weird things or combinations or we're going to take positions in some of these companies that have no sales. and what ends up happening is those stocks bounce to the upside and then they crash. I'm looking at one right now of drones that on the news from the president, the stock went from 19 to 34, 19 to 34. It's 16.5, five weeks later. Somebody bought it at 20 and 21 and 22 and 23 and 24, up to 34. So we just want to let you know they're hitting them again today.

Our poster child at OKLO down another 9% today. It is now gone from 194 to 41 in change. So that's number one. Number two, our warning about the space. And that was just valuation-based. SpaceX now is under the IPO price. As we speak, it's 131 in change. Markets closing in about three minutes.

A $135 IPO that went to 226 in two days is now $1,3,000, 31 in change and the touted space stocks are getting mutilated. The warnings. Rocket Labs has now gone from 151 to 67 down another nine bucks today. That is in the 50s. ASTS has gone from 136 to 50s. It's in the 50s. ATRO. What the heck's that? Actually, this company has sales. It just went from 88 to 66. It has sales, though, I must admit. So we just want to start with that, which takes us to the next part of the equation. The lack of a better word, they continue to unwind the same.

semiconductor, artificial intelligence plays even more today. As we close the day, the Sox is down 547 more points today. The Sox has now gone from, and by the way, it's breaking 12,000, which was a hold. 14655 to 11856. Almost 3.30. It's 20%, and that's the index. And then you go look at individual names. I am seeing, I am seeing 40s and 50s, plenty of 20s and 30s, but there are 40s and 50s now. Sandisk is down 40% from the highs. For instance, Seagate 1145 to 745, that's 400.

That's about 37%. According to my rusty abacus. And I can go on, but no need to. I have no idea what tomorrow brings. I'm just letting you know again today, they were really selling down the AI semiconductor trade up next

more on that this is the one only investors edge hi I'm Gary Kallbaum 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 complimentary portfolio review. number to call is 888-4-22-55-9. That's 8-88-4-2-2-55-9. That's 888-4-22-2-5-5-9. Investment Advisory Services offered through call-bomb capital management. 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. What I need you to know is that we started with Sienna, which occurred on June 4th. That was really the first name, reported numbers that broke down.

That was it. That was it. We started with that. And pretty much every day, another and another and another and another and another and another and another and another. To the point where they're really getting them now. Near term, they've had a big drop. I think they can bounce. they should be able to bounce, but trend, not exactly a friend.

And to give you an idea, Sandisk, 2354 to 1411, Seagate, 1145 to 745. By the way, this is all in the last four or five weeks. Western Digital, 800 to 466, just, for instance, just for instance, other names, Caterpillar, is down 200 points in like 10 days. By the way, that's like 1,300 Dow points. And of course, there's that artificial intelligence component for Caterpillar. Corning. And we're not making these numbers up. 11 days. It's gone from 272 to 158. We're not making this up.

272 to 150. Corning. Cisco and the Dow was acting pretty decently. 130 to 109, remember Intel. Intel, 142 to 95 in 11 days. And you may be asking, well, what's going on? I have news for you. I don't know.

all I know is Sienna and then the next one and the next one and we're reporting it to you. We're showing it to our peeps in our webcast and it's just as we state the next one and the next one and the next one leading to. And as we told you, when we do our little stupid sample of the market, if there's only a hundred stocks, in the market and assume we know what an up trend is and they're all in an up trend and then all of a sudden 50 of them flatten out and turn into a downtrend, it changes the complexion. And the more names that worsen, the tougher for the market. That's what happened in this area. And again, we have no clue about tomorrow.

And they are certainly due to bounce. but I can't guarantee the bounce. I thought they'd bounce today. So we're just letting you know, dang. Now, what about, well, hey, this thing's down 40% isn't it cheap? That's a good question. Well, we like saying, we'll let the market tell us what's cheap. The market.

Not somebody's opinion. We did this little exercise for you on SpaceX where everybody put buy recommendations on and except one neutral once they were out of their quiet period. Did they help? There's not one person making money now in SpaceX since it's come out. And of course, as we said, the space stocks. So we just wanted to start with that because, we're going to segue unbelievable money flows in the market, other places today. Don't know if it's going to last or not, but it rates a big wow with a couple of provisos.

Notice the big word out of Gary. Provisos. I don't even know what proviso means. I know what it means. a couple of things sticking out type of thing. But we just wanted to start with, wow. And while we are on the subject of weird, Goldman Sachs was down 57 bucks today.

After a great reaction to earnings, Morgan Stanley down 10. Banks. The Dow finished only down 105, but at 350 it was down 270. Somebody pressed the button into the close. Needed. The NASDAQ finished down 387. I think the NASDAQ went up 100 points in the last 10 minutes.

I think, if I'm correct, I'll have to look at it. NASDAQ hit 25, 7.6. It went up 100 points. in the last few minutes. Oh yeah, it did. And that's the story of the negative side. And I repeat, I have no clue about tomorrow. I just know what they did today.

Software, some of the worst software stocks bounced today. The best software stocks were mostly red today. Interesting enough. They're very weird. And of course, we're also an earning season. I do know Netflix came out after the close. Oh joy, it's down two and a half bucks more into new yearly lows. Oh joy.

Up next, Oracle, we've been warning about this very important software name. And it has us asking questions. What is the market? 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 Comes highly recommended You're going to feel better if you talk to him All right, let me do this quickly Our president is going to have a Primetime speech tonight at 9 p.m. Supposedly it is about

the 2020 election. He's already lost a ton of independent voters because he keeps saying he won the election. And we've told you differently. In fact, his main attorney has come out and said, what was it named, Sidney Powell, that you shouldn't have listened to anything she said. There's been investigations after investigations.

And of course, there's some people out there with videos saying this, that. But he's going to do that tonight. If he goes too far, he's going to lose more votes for the Republicans this midterm. Of course, he don't really care anymore because he's not running again. We'll see. But I want to also tell you, and this is what irks to live in hell out of me, every now and then we will say to you, what do you teach your children? Well, you teach them not to lie, because if you lie, you're going to have to cover it up. And if If you cover it up, you're going to have to do another lie. And if you found out to be a liar, people are not going to believe you when you tell the truth.

Don't cheat, don't steal, you know, the normal things. Well, we've watched this president's family make billions of dollars. Investigations have been going on. And we now see that Trump has promoted more than 20 companies on his truth social account. promoted companies days after he bought the stock, I can't tell you for me that's in this business and knows what's legal and illegal, how demoralizing this is. We've seen Nancy Pelosi make millions of dollars throughout the years the same way. She wouldn't promote something, but she had inside information. We've seen others in D.C.

We've seen Biden and his family corrupt up the wazoo, but to the tune of what, 20, 30 million. This president's family are in the billions, and they don't give a crap. They know it's all being reported and they don't care. The press secretary was bluntly asked about the sons getting massive amounts. hundreds of millions of dollars from our government after they joined startup companies. And you know what is said by the press secretary? We do not believe there's any conflict of interest. They've made themselves so immune to any problems.

It's demoralizing because you and I are going to jail. We're going to be indicted. We're going to be tried. if found guilty, we're going to go to jail. And our leader of this country, amongst others, it's a farce now. It's an absolute farce. I don't even know what to say anymore. The White House is strongly denied that Trump has ever used his office for financial gain

and said his actions are aimed at benefiting the American public. All the president's stock trades are conducted by outside financial managers. So how the hell are the outside financial managers buying companies days before the president is promoting them? It's called don't piss down our backs and tell us it's raining. This is not a Republican thing, a Democrat thing, an independent thing. It's a right and a wrong thing. And we're going to call everybody out. And unfortunately, they just don't give a question.

crap. One big giant middle finger at us. While they're making billions of dollars and they can't be prosecuted. He will be impeached if the Dems win the House, but he doesn't care. He's already been impeached twice. Republicans aren't going to kick his you know what out. Do you. Do you? moralizing. That's all I can tell you. Big money flows today. Listen up. Consumer Staples. Tobacco. Had a big day today. Philip Morris, 5%. Altria, 3%. British tobacco, 7.5%. But there's really no leadership in there, but I just want to let you know. You had some money flows into housing after the pulling back harshly, but big money flows in transports. The transports were up 715 points today, about 3.2%.

J.B. Hunt, J.B.H.H.T, up 22 bucks today, 8% on their earnings. And what did that do? It had all just transports, rails truckers, gapping up today. and finishing pretty damn good. XPO, 7%. Union Pacific, 3.8 New Yearly High. Norfolk Southern, 3% New Yearly High. CSX, 3% New Yearly High.

Ryder, not a New Yearly High, but up 3%. How about MATX? Mattson, Shipper, 7%, new yearly high, old Dominion freight, up, 5%. Not a new yearly high. But I'm just making a point, dang. And that's while they're crippling the artificial intelligence semiconductor trade. Not done. What have we said about retail?

Dead, except for a few names. We've been harping on, believe it or not, Crocs, Target. We've even mentioned CVS drug stores. You had a strong day in retail today. And anything, almost anything, consumer. And may I state for the record, we're just going to report to you, Burlington stores, breaks out to a new yearly high. For instance, raw stores back above the field. 50-day move-in average.

William Sonoma, maybe turning up. Targei, Target, near the highs. I can't mention too many. I do want to mention Costco up $29 today, but that's dropped from $1,100 down to $900. Normal to bounce, I guess. And just my whole screen of retail, except a couple of names.

Strong day. Medicals. They had a real bad day yesterday. They had a real good day today. Except I do want to report intuitive surgicals down 30 bucks in the aftermarket on their earnings. Transports.

Retail. Medicals. I don't know what else to tell you. And again, at the end of the day, the Dow rallied 170 points in the last 10 minutes. The socks rallied 100 points in the last 10 minutes. last 10 minutes. We'll see if that holds into tomorrow. In the Dow, Caterpillar down 37, Goldman Sachs down 57. Wait a minute, hold on. How's the Dow only down 100 if they were down 94 points total with them, which is like 600 and something Dow points?

Well, what we say about medical, Amgen, up 11, 70 Dow points. For instance, Home Depot with better housing, 40 Dow points. 40 Dow points Medical Merck 30 Dow points and then financials weirdness today weird Goldman Sachsown 57

Citigroup roughed up Morgan Stanley roughed up but the regional bank ETF breaks out to new highs Visa up 10 bucks by the way I think Visa's almost new yearly highs and maybe a big breakout

we'll see what tomorrow brings wow Wild rotation. It's all I can tell you. Wild freaking rotation in the market. Where my screens are beat red in some areas and lime green in others. My drug stock group here, good day. Lily was up 12, though it was much stronger, but McKesson up 44.

You're listening to... What are we waiting for? What are you waiting for? One, two, ready, go. Investors Edge with Gary Culper. Welcome once again to Investors Edge. Let me just repeat a couple of things. First and foremost, another rough day for the artificial intelligence semiconductor trade.

We believe it just got so over-owned, over-loved, and over-leveraged. Guess what happens when you're too-leveraged? You got to get rid of the leverage first. And that kind of feeds on itself. That's number one. Number two, I do not think it's a help that the biggest IPO ever is a failure so far. And that's SpaceX. It also puts a lot of supply onto the market.

Next, the froth is going by the wayside big time. That's actually good news longer term. term. We hate froth. Lastly, amazing rotation now going on. Coming out of this and into that. I haven't yet mentioned Apple, another new high. Microsoft had an update. I worry that is parking. What do we mean by that? Well, technology portfolio managers has to stay in technology. So if they see these other things crumbling, what do they try to do? D-risk. How do they de-risk the most boring lower beta big name out there?

Apple, even a Microsoft. We've seen that before. Next, massive amount of earnings to come in the next three weeks. Pay attention. Netflix is getting yonked again in the aftermarket. Netflix has gone from 134 all-time high. It's 68 and change in the aftermarket now. And by the way, it topped out July of 25.

Correct. I haven't looked at it. I don't know what the reasoning is. Competition beats the hell out of me. I have to mention Oracle. It's gone from 250 to 124 since June. 1st. That's down from an all-time high last September of 345. It has gone down 50% since the beginning of June. 50. This while some other software stocks have rallied. I don't know anything except what's reported.

A lot of debt, cash flow issues. that talk about the spend and what's going to come through, that's all I know. But the other thing I know is that the stock is now down 60% from last September. 3.45 to 124.

That's a lot, huh? But down 50% in over a month and a half. I wonder if there's something behind the door. I wonder what's doing this. I worry about what's out there. And is this going to be a catalyst? Because I've always been a big believer in the market.

And it being smart and figures things out before the news comes out. We'll see. All I can tell you is the institutions. These are the big mothers that have dozens of very smart analysts that go out and meet with companies, meet with suppliers, meet with the buyers,

run over balance sheets, 250 to 124, for a big institutional favorite throughout the years. And the other little worry, I don't hear anything coming out at Oracle's mouth. If I was running the company, I'd be making a statement. Keep that name in the file manager. I've seen this before in the past. The financials in 0708, getting blasted on no news and then you know what happened at the end of the day.

We're not saying the same thing's going to happen. We're just saying and stating a fact of life, and that is, it's down 50% in less than two months, while software had been better. It's down from 345 to 124 in less than a year. Stay tuned. We'll keep you informed. We hope there's nothing behind the door. Back on track.

Amazing rotation again. Not so sure I've seen it like this, but leave no doubt the die has been cast on the AI semi. notwithstanding bounces that can happen tomorrow. I can't begin to tell you how many times I have scanned the same 250 or 300 stocks to try and find some light at the end of the tunnel. Maybe tomorrow. Have a great evening.

Drive carefully when you get home to like we do quite simple. Make sure you hug your family. Hug your children. They will feel better. You'll feel better. I promise stay well. Be well. Have a great evening.

Good night all. Bye bye. 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 GaryKK.com.