Investor's Edge with Gary Kaltbaum - Still Range Bound

Episode Date: June 7, 2022

More Info At: http://garykaltbaum.comMore

At CVS, it matters that we're not just in your community, but that we're part of it. It matters that we're here for you when you need us, day or night, and we want everyone to feel welcomed and rewarded. It matters that CVS is here to fill your prescriptions and here to fill your craving for a tasty and, yeah, healthy snack. At CBS, we're proud to serve your community because we believe where you get your medicine matters. So visit us at CVS.com or just come by your food. store. We can't wait to meet you. Store hours vary by location. 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 Gary Coltbaum,

your host day. Thanks for being with us today. Glad you here, ladies and gentlemen, happy that you are listening. It is Tuesday, June 7, 2022. Thanks for joining us. Thanks for joining us. still with the COVID taking the test tonight. Hopefully, I will tell you, I feel a hundred times better today. Less tired. Still little you hear in the voice. But that's it. That's it.

And if that's it, boy, would I be thrilled. But we'll see what they say tonight. I still could be lingering with it. beats the heck out of me. And that's the story. Anyway, stay safe. And let me just state for the record, even with this, what they call lighter COVID, it sucks. Anyway, thanks for being here.

Ladies and gentlemen, we are pre-taping this show. The market will close in about 15 minutes. A big, gigantic, whipsawing day. We opened very badly today. We ramped up, got it all back, dropped down again. got it all back, dropped, and now towards the close, it's turning into a very good day in the markets. But more importantly, one day does not make several days could. So just so you know, we've had this bare market in stocks.

We hit a low a couple of weeks ago. The day we had that reversal was that Friday the 20th. Listen carefully. We rallied up for five days off of that reversal from very stretched, extended, oversold conditions. And what we mean by stretched, extended, and oversold, is that that last move down was what we call an outlier move. Outlier moves can be both up and down.

That's very far, very fast, away from the normality of the markets. So we rallied up for a few days, and now this is day six from that day where we hit the little wall. So we rallied up for a few days. That last day was strong, and we have sat for six days. But gaps to the downside finishing up, gaps to the upside, finishing down, whipping all over the place, uncertainty, but it's outcome that matters most.

And we are letting you know. I want you to listen carefully. you can draw a line underneath the last six days of trading. This morning, you would hit the lows of that line. You can draw a line above the last six days of trading. We're just letting you know a break above. listen carefully should

give you another leg to the upside in this bare market and let's take away the words bare market still a bare market but we're just going to let you know if we break above the range of the last six days we're going to have another leg up of unknown price and time

and still be a pain in the rear you got that so when you have a chance tonight even if you don't even do this go just onto google chart of the market one year daily and you will see how we've rallied up for a few days made a right turn and just whipping for six days and may i state for the record large moves today you hit a low of 32-642. Off the lows, you're up 500 and 40 points. You were down 270 early. You're up 270 as I speak. Three days ago, that was Thursday of last week, you had 700 points of a move from the low to high. that day you were down 300 points you finished up 500 the day before was a reversal to the downside so nobody ever said this easy but it's outcome that matters most what is the outcome of all this back and forth what is the outcome

we are getting the outcome today in the push towards the highs of the last six days and they just need one more shove. Now it's 10 of, and they're trying to rally this into the close, and this to me looks like institutions positioning for some higher prices here. Simple as that. But I repeat, way below the highs, still way down off the highs, still not a lot of leadership except the few areas we have mentioned to you, but improvement off the lows. Remember, markets are made of stair steps and we read them. This would be the first stair step, but we got to get above.

And believe it or not, yeah, you got to stick it. You know, we use the terminology here, breakout. That just means something is trading in a range for a while. And every time it hits the high of the range comes down, every time it hits the lower the range bounces off. So once you break out above the top of that range, you call it a breakout of the range. And in a good market, breakout continuation. In a pain in the rear end market, very often, well, they'll break out and tuck right back in like a frightened turtle.

And this is the type of market you're in right now. Yesterday we were up, 300 and something, came all the way back down. Gaped down this morning, came all the way back, and more. That's what we mean by the pain in the rear market in this range that it's been in. But I repeat, it is the outcome of that range that's going to matter most. And as we finish off today, it's finishing pretty good. The question is. and this is not a dumb question to ask.

Do they gap it back down tomorrow morning? And screw the hopeful. That's what tough markets do. They make you question. They make you have doubts. But we have price and its action and its move. And the plethora of things that we scan that give us more confidence

then the norm. So just letting you know, you had another wicked day-to-day finishing for the Bulls the good way. We're now, instead of being at the lows of the range that we were in this morning, we're near the highs of the range. Remember, tight range.

We're not talking about big range here. And keep in mind, it's only six days plus that first day at the high doesn't mean you got more days of this. We're just letting you know what's going on. Improvement to what extent we don't know. You still got to worry about just so you know, oil prices, another high today. Markets ignoring it. But yields coming down today back below 3%.

that's good news. But then you have Target, how to reiterate even lower numbers than they said three weeks ago, having it down 12 bucks early again today after being trashed for 100 bucks already, but only down three as we speak. So maybe the markets had enough of all that. So a lot of cross currents,

a lot of crap going on. We're just letting you know when you do your thing tonight, just go look what's going on over the last six days. And if you woke up this morning, you're thinking, crap, they're resolving it to the downside. At the close today, you're thinking, well, they're probably going to resolve it to the upside. We'll see what happens. Up next, lots more to cover. I hope we explain that well.

I'm Gary. This is the one on the Investor's Edge. Hi, I'm Gary Kalbaum, host of 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,

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Investment advisory services offered through call-bomb Capital, management. All right, quick quiz for the hiring managers out there. What's worse? Being understaffed or being poorly staffed? Well, that's a trick question, because both are recipes for chaos. Either way, just say to yourself, this is a job for Indeed's sponsored jobs. You'll get matched with candidates that meet the skills, certifications, and everything else you're looking for. Or go a different way and get no traction. Seriously, sponsored jobs posted directly on Indeed are 95% more likely to report a higher than non-sponsored jobs. It really is a no-brainer. Spend less time searching and more time actually interviewing candidates who check all your boxes. Less stress, less time, more results.

When you need the right person to cut through the chaos, this is a job for Indeed's sponsored jobs. And listeners of this show will get a $75 sponsored job credit to help your job get the premium status it deserves at Indeed.com slash podcast. Just go to Indeed.com slash podcast right now. Terms and conditions apply. Need to hire? This is a job for indeed sponsored jobs. Struggling to see up close, make it visible with Viz. Viz is a once daily prescription eye drop to treat blurry near vision for up to 10 hours. The most common side effects that may be experienced while using Viz include eye irritation, temporary dimmer dark vision, headaches and eye redness. Talk to an eye doctor to learn if Viz is right for you. Learn more at Viz.com.

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. The last bastion of quality programming. With Gary Coltbaum. It doesn't get better than this. Okay. Let me add a few other tidbits to how we started the show today on this back and forth over the last six days of a market that's really trying to enough's enough on the downside. And as you know, and we have reported to you, a ton of growth stock.

are down 60, 70, 80% off their highs. A ton of them. A lot of the average stock, just average stocks down 20s and 30s. List goes on and on. As usual, the Dow holds up better than everything else. Remember what we tell you in bear markets, money flows into the biggest, most liquid names and it's usually the Dow. So that's no biggie. But we also want to report to you, and rightfully so, Listen carefully. If you turn on the media now, and I'm not just talking about the business media, I'm talking about all of the media. If you are just Aunt Mary and Uncle Bob, whether you're retired, coming home from work, and you turn on the TV, all the news is bad. All the news is bad.

We are letting you know if the markets to go. higher. People get inundated with nothing but bad news if the market wants to go higher is very good news for the keen eye. Why? Who wants to get into the market when all the news is bad? And by the way, we're not indicting them. They're rightfully reporting all that news. Oil prices, the gas pump, every day I'm here another five cents another seven cents persistently moving higher and I can tell you it was up again today there is something called the USO that trades

it's a exchange traded fund for spot price of oil it is above the highs of when Russia invaded Ukraine not making this up. That is bad news. It doesn't matter whether you're an Uber driver. Oh, it does.

We're just driving to work every day. It is bad news on oil prices. And it should be reported as that. You got the Secretary of Commerce, her name is Ramondo, was interviewed by somebody and said, there's nothing we can do at this time. What? An administration telling you

the gargantuan amount you're paying in your gas tank, there's nothing they can do? That's bad news. That's not good news. How about the supermarkets? Hey, I haven't been to the supermarkets

in more than a week because of COVID. But we do our own channel checks here. relentless price increases. And I'm not talking about the non-essentials, even though, I don't know if you know this, but the Doritos, they're charging the same price but took out five chips. By the way, they actually count that way.

That's bad news. Have you gone into the paper aisle? That's bad news. What you have to pay for tissues and paper towels and toilet towels, and toilet paper and the like. Dog bones. Chocolates. I always take a look at this $1199 bag of chocolates.

That's now $13.99. All bad news. Why am I emphasizing this? If the markets to go higher, that's good news for the keen eye. Because the masses will not want to be in the market. market because it's all bad news, which begs the question, well, how can the market go up if it's only bad news? I don't know. That's why we follow price and how it plays itself out. That's why we follow a roadmap. That's why we're telling you now for the first time,

since the high, a chance for the market to make a lower high, a higher low, duh, a stair step to the upside. Didn't say it's going to. We're just saying, got a chance. There was nothing but bad news out today, starting with Target and higher oil prices. But a 270 point drop turned into a 270 point drop turned into a 270. Point gain for the Dow today at the close, almost. The NASDAQ was down 180 on the open.

Turned into 113 gain. You get where I'm going? Pay attention to the markets. And tomorrow's another day. So the market's now closed. And today's market wrap is brought to you by Investment-Models.com. That's Jimora back. One of the great market timers.

No gray areas with the man. You're either in or out of the market with his proprietary indicators. Go check it out. Investment-mottles.com. Up 264, up 39, up 113, up 112 on the NASDAQ 100. Sox was only up 30. Transport's only up 19. Advanced declines got better throughout the whole day.

Oil prices again up today, which is bad news, but a little good news yields on the 10-year came down today. Catching my drift. And if tomorrow the Dow is down 260, that means we're still in range. if the market does nothing to mark means we're still in range but when i do my scans today i expect to find some improvement and some better setting up of what could possibly happen going forward i'll know more later tonight after i get my covid test and hopefully it is finally negative because i have to

tell you in the last few hours, I actually feel like my old self. Last few days, felt like I needed to sleep 24-7. Yay! So we're going to do webcast tonight showing all this with our members. If you want, check that out. We'll explain that in a minute. I'm Gary. This is the one only Investors Edge. All right, quick quiz for the hiring managers out there. What's worse? Being understaffed or being poorly staffed? Well, that's a trick question, because both are recipes for chaos. Either way, just say to yourself, this is a job for Indeed's sponsored jobs. You'll get matched with candidates that meet the skills, certifications, and everything else you're looking for.

Or go a different way and get no traction. Seriously, sponsored jobs posted directly on Indeed are 95% more likely to report a hire than non-sponsored jobs. It really is a no-brainer. Spend less time searching and more time actually interviewing candidates who check all your boxes. Less stress, less time, more results. When you need the right person to cut through the chaos, this is a job for Indeed sponsored jobs. And listeners of this show will get a $75-sponsored job credit

to help your job get the premium status it deserves at Indeed.com slash podcast. Just go to Indeed.com slash podcast right now. Indeed.com slash podcast. Terms and conditions apply. Need to hire? This is a job for Indeed Sponsored jobs. Struggling to see up close, make it visible with fit. This is a once daily prescription eye drop to treat blurry near vision for up to 10 hours.

The most common side effects that may be experienced while using Viz include eye irritation, temporary dimmer dark vision, headaches and eye redness. Talk to an eye doctor to learn if Viz is right for you. Learn more at Viz.com. Enjoying a healthy dinner that tastes great means eating out at a pricey restaurant, right? Wrong. Healthy choice simply steamers are delicious and healthy. The Tray-and-Tray steam technology delivers crisp veggies and tender protein and tasty, selections, like Healthy Choice Simply Steamer's grilled chicken and broccoli Alfredo.

It's a satisfying meal with 28 grams of protein and nothing artificial. Healthy Choice Simply Steemers. What having it all tastes like. We're listening to. America is talking. Investors Edge. He's got to be pleased with that. The crowd is just on his feet here.

He's a Cinderella boy. With Gary Colbomb. It comes highly recommended. You're going to feel better if you talk to him. Ladies and gentlemen, yesterday I did not do something on this show I have never failed to do. And no excuse. I did not mention D-Day, June 6, 1944. You got that?

I messed up. It was the biggest invasion by C in history. on June 6, five years of war with Germany. And everybody should read about it. And if you have not seen the beginning of saving Private Ryan, well, it's not an easy watch. But from what I'm told, it was a very amazing depiction of it. I have been to Normandy.

and I will tell you I've been to the American Cemetery there also. When you're there, you feel it, especially if you've seen the movie. There's so much that's still there that they left there, the holes in the ground. They're still finding bodies. Well, at least when I was there four or five years. years ago, that's what I was told. We honor. And I got to tell you, you try to put, I always think the best thing, my best attribute is I always put myself in somebody else's shoes. Think to myself, imagine these young men. Imagine these young men. They were shooting targets. coming on to the beach.

Anyway, I apologize for not mentioning it yesterday. You all know how I feel about our men and women in uniform, all of them in every way, shape, or form. They risk their lives for us, and for all the defund the police, go screw yourselves. Okay, Target. So just so you know, and, you know, it is stuff. running targets this is target okay has gone from two hundred and fifty five dollars in

April it closed today at 156 target it hit a load today of about 148 and then rallied they had to lower their margins again went from nine to five point three to as they are now saying, and here's the good news for you consumers out there, they have ridiculous amounts of excessive inventory, they mismanage product mix, and they are going to put everything on sale like there's no tomorrow. Which parts I don't know, you may want to check out your local target. And this is a company very well managed, very well.

It tells you how tough the environment has been if it happens to a target. It's taken the stock all the way back down to August of 2020, all the way back down. And of course, it affected other things. But when all was said and done today, we're having another one of those, oh, the bad news is now out. So Target only finished down $3.70 after being down. 12 home Depot today was down 11 finished down to and I guess there may be some sympathy in there to whatever extent and other retail which was read most of the day finish mixed so maybe a little bit of

that's going on remember if a market wants to go higher during a bear market or let's say the bear market's over bad news will still come out and end up getting ignored because it looks past to whatever the market's looking at. So just letting you know, really good day today has not broken above the range yet of the past seven days. We'll see if it decides to do that tomorrow. All we can tell you, since this move every time it looks like it was ready to move, it fell back. Every time it was ready to fall back, it got defended. You end up range bound.

We don't have a lot of earnings this week. In fact, there really is not anything I need to mention in the way of earnings. No, there are a few. So we're in one of those moments. Big earnings will not come out till gargantuan amount of earnings till mid-July. But good day today. Again, we'll see what's going on tomorrow.

Next, yesterday I did this whole thing with you guys on the SPACs. If you listen to us, we saved your arse. I put out a note today on the website, on the SPACs. found a bunch of others that got killed yesterday also. Just never forget this. The worst of Wall Street comes at the end of bull markets or towards them or in bubbles. It's the worst of Wall Street. When they will foist upon you, you know, we've done example, you know the little stupid example we've done with you. Now we can do it again. If you walked your dog and it took a crack, and somebody walked over and said,

I'll give you a dollar for it. Okay, fine. Somebody walks over to him, I'll give you five. Fine, somebody walks over him, I'll give you 10. Somebody walks over him, I'll give you 20. The last guy runs an investment bank says, oh, let me take it for a hundred bucks. I'm going to bring it public.

And trade it on an exchange, even though it's dog crap. Well, what these SPACs were, were just companies invented out of thin air to merge with other companies even though there weren't any companies. And due to the fact there weren't any companies, what did they do? What were the hot things the market? What do we tell you about scammers?

They go after you with the hot things. I'm not getting too many scams emails anymore on coins right now. Big Bear Market. They come after you on the hot stuff. What was hot? Early February of 21. And before that, electric vehicles, batteries for electric vehicles. how about things that fly in the air that will take you on travel,

even though that would be years away. They actually had the nerve to merge with these type of companies. And they lied. They merged with liars that came out and said, oh, we've got back orders like symbol ride, R-I-D-E, where the guy went on TV and looked like a lie. I don't know if he's been indicted yet, but he should.

Stocks gone from 34 down to a buck 84. And there was another one that was going to be like the Jetsons. You know, with the air taxis. Yeah, that's coming soon. That's a profitable business. Yet they merge with it. It's down 90%. Biotechs with no sales or very little.

And the valuations they brought them in at were asinine, ass a 10, and ass 11. Amazing. Virgin Galactic. Richard Branson, love the man. Love his airline. But he's got this space thing that came out. They did it through a SPAC. Symbol S-P-C-E, of course.

They got it up to 63 bucks. $20 billion market cap. Even though they never went to space, $6.91. You got to remember all this. It will be repeated. It's how it works. Up next. We'll wind it up. And then I'm going for my COVID test. This is the one that only investors edge. All right, quick quiz for the hiring managers out there. What's worse? Being understaffed

or being poorly staffed? Well, that's a trick question because both are recipes for chaos. Either way, just say to yourself, this is a job for indeed sponsored jobs. You'll get matched with candidates that meet the skills, certifications, and everything else you're looking for. Or go a different way and get no traction. Seriously, sponsored jobs posted directly on Indeed are 95% more likely to report a hire than non-sponsored jobs. It really is a no-brainer. Spend less time searching and more time actually interviewing candidates who check all your boxes. Less stress, less time, more results. When you need the right person to cut through the chaos, this is a job for Indeed sponsored jobs. And listeners of this show will get a $75 sponsored job credit to help your job get the premium status

it deserves at Indeed.com slash podcast. Just go to Indeed.com slash podcast right now. Indeed.com slash podcast. Terms and conditions apply. Need to hire? This is a job for Indeed's sponsored jobs. Struggling to see up close, make it visible

with Viz. Viz is a once daily prescription eye drop to treat blurry near vision for up to 10 hours. The most common side effects that may be experienced while using Viz include eye irritation, temporary dim or dark vision, headaches and eye redness. Talk to an eye doctor to learn if Viz is right for you. Learn more at Viz.com. Enjoying a healthy dinner that tastes great means eating out at a pricey restaurant, right?

Wrong. Healthy Choice Simply steamers are delicious and healthy. The Tray-and-Tray steam technology delivers crisp veggies and tender protein and tasty selections, like Healthy Choice Simply Steamers grilled chicken and broccoli alfredo. It's a satisfying meal with 28 grams of protein and nothing artificial. Healthy Choice Simply Steamers. What having it all? taste like you're listening to

what are we waiting for well what are you waiting for one two ready go action um the ones that I by the way I was thinking maybe this this 20 to 50% drop in the smacks yesterday was like a fat finger I got to tell you um the ones that I listed um seven out of ten were down

today. So it was real get me to hell out. And remember, there are things that were 30 that are now at 1. And you know you could ever recover from that. Got to think smart, kids.

You know, sometimes all you got to say, wait, they have no sales but it has a $20 billion market cap. It has no sales but it has a $20 billion market cap. Really? Now, I've also told you one of my big worries with this market is every time we have an upday, GameStop gets bought.

This is one of the meme stocks. It was up 18 bucks today, 14%. Maybe something good is going on with the company? I don't know. All I know in the last four quarters, they lost more than six bucks a share. Yeah, half a billion dollars. Yeah, we'll see. I've never seen bottoms of bare markets with any froth in speculation.

So we'll see. All we wanted to tell you today, you have six days plus the seventh day. That was the first day that hit the high. Rangebound. Very good day today, good comeback, the opposite of yesterday. Notice, I'm not going further than that. that. Some of my tactics going forward. So I've been whining and complaining to about these SPACs. I've been whining and complaining to for months about the ridiculously priced IPOs,

that they came out in the top of the market. And as we move forward, the quality of those IPOs worsened. That always happens. It's the nature of market cycles, my tactics every day, two or three times a day, I go to my two to three year IPO screen, these initial public offerings of the last two to three years. And I don't look at the company. I look to see if there are any days where the stock would average trade a million shares and it trades 8 million and is up 10% or has a great reaction to whatever earnings report they have. Why would I do this when they're so bearish? Because they're so far down. Maybe some of them have wrung out the ridiculous valuation. And I think some of them are going to be

10 baggers in the next 10 years. That's how every cycle works. The biggest winners of most decades are initial public offerings, but they've got to come out at the right price. We've highlighted for you companies that came out. And one I'm stunned by, we talk about this Jessica Alba, she's an actress. She started this honest company. It's personal care products organic type of stuff and turned into big business. I brought it public, $16, had it at $24 within a day, it's $3.5. That's what we mean by ringing out. And unfortunately, they fall under the heading that I warn you about of bare markets.

In bare markets, if you lose money, does not matter what you do, your stock's going to be crushed, they lose money. And unfortunately, their sales growth is now year over year in the red. Always going to be a death knell for a stock. I'm just bringing that up because people know about it because of the actress. But I'm just letting you know as we go through this screen of IPOs. We're on the lookout. We're on the lookout. We're on. the lookout for the next Amgen, from the 80s and 90s, Ascent Communications, American Power Conversion, America Online, Amazon, eBay, Yahoo, when it was a Yahoo, huge list. So far, haven't seen Squat. In fact, all I've really seen is the opposite. Stocks that have been absolutely

destroyed. Destroyed. And it doesn't matter where, but like ZU, symbol ZH, 9.5 dollar deal, China, hit 13. It's a buck 85.

How about Vroom? This was going to be another one of those Carvanna types. $22 deal, had it initially right open at 40, went to

70. It's a buck in a quarter. Unbelievable, huh? these are the things that must be remembered. Must. Must. Or you're going to be doomed to make the same mistakes over and over again. So that is going to be our tactic. We'll even look at SPACs.

In those SPACs are some companies. Unfortunately, as we've gone through them, a lot of low-quality stuff. We mean low-quality. We're not talking company. We're talking about they lose money or have very little in sales. There are some biotechs and there may be the next wonder drug comes out.

We're just letting you know nothing to do just yet. And as I look at my IPO page, a ton of them are $10 and less. And I can promise you, they were a lot higher than $10 at IPO. So good day today. We'll see what Curry Ball the market has tomorrow. I'm headed for my COVID test. You'll have a great evening. You all drive carefully.

And when you get home, do like I do. It is quite simple. Seriously. Make sure you hug your family. Make sure you hug your children. Stay well, be well. Exercise. Alcohol and weed are overrated.

Until tomorrow, same time. Have a great night, everybody. Bye-bye. This has been Investor's Edge with Gary Cult Bomb on BizTalk. To listen to past episodes or to get in contact with Gary, go to Gary K.com. That's Gary Kay.com. Hi, this is Danielle Robey, the host of Bookmarked by Reese's Book Club, a podcast by Hello Sunshine and IHeart Podcasts.

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