Investor's Edge with Gary Kaltbaum - The Diverging Week In Review [07.02.2026]

Episode Date: July 2, 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 Colb. I'm your host. A thanks of being with us today. Glad you here, ladies and gentlemen, happy that you are listening.

It's Thursday, July 2nd, 2006. Tomorrow's July 3rd, the market's closed. Yay. Ladies and gentlemen, hope you have it a good day. We're on the iPhone app today, the radio app. Hopefully it's coming in good. We've had our moments, but I think you can understand us well. Today, I want you to listen real carefully.

A little less in time. Let's get moving. Hey, this is Investor's Edge. Serious talk on everything that affects you. We'll do the markets, the economy, your job, your industry. Anything that emanates from Washington, D.C., which is pretty much a comedy act these days. What else? Scam, shams, corruption, debt deficits, you name it, we cover it.

And if you don't get this radio show in your city, we'll post it at garyk.com. We'll also post it on our X feed. If you don't follow us, you should. And if you'd like to email us, just be nice. Be respectful. We'll be nice and respectful back. you like Hamas or are terrorist-loving or is a racist or you rob the bank or something stupid. So listen up. So I have three front screens at all times. Three front screens. Let me tell you about one of them.

two half columns of oils, a very small column of auto dealers. I have two stocks next to each other in ADP and paychecks. I've got about 10 drug companies. I have four auto stocks, four GM, Ferrari and Stalantis, but Ferraris out of Europe. I got about eight defense stocks, six managed care stocks, United Health and the rest. And then the next column is about 60 or 70 retailers. Starts at Abercrombie and Fitch, ends at Zumies. And in between we have most of the retailers.

Then I go to the next column, and it's four of the exchanges. You know how I've been telling you the exchanges are crashing? I just look. The next comes about 20, 25 stocks of medical companies. Intuitive surgical striker, Betten Dickinson, the like. Then we have about 10 big biotechs. A little bit below that is three garbage companies. Waste management, waste connections, Republic Services.

then we have four cruise lines. Under that is three hospitals. Next column is about 10 home builders. Underneath that is the transport index. Underneath that are other transports that are not the transport index. Under that we have four hotels. Next column. A bunch of the metals and mining, not gold and silver, but metals and mining.

Steel, copper, aluminum, throw in coal. Underneath that of the airlines. Underneath that are two casinos based in China. The next column, about 20 of the consumer staples, food, beverage, tobacco, household products. Underneath that is a bunch of insurance stocks, I think about 30 names. Next column, about 15 to 20.

restaurants. Under that, what we consider to be economically sensitive names from Alibur Marl down to Whirlpool. Next column, the big banks and big regional banks. Under that is a bunch of financials. Whether it's Alley Financial, Ameriprise, Capital One, KKR, which has been crumbling, Raymond James, UBS, even MasterCard and Visa there. And then the next column, the whole column is semiconductor stock, 75. That is one screen. So at all times, I can see what's going on. My middle screen, well, to the right, that first column on the right is the Dow 30,

and then right in the middle, our leading stock. and they get moved around because if a stock that's leading breaks down it leaves and I'll tell you in a second where it goes to and in the past while it's been semiconductors artificial intelligence memory optical and all that crap on this page also I put the airlines there about 10 days ago. I put the managed care there. I put some biotech there about three days ago. I put insurance about three days ago. By the way, both of those a little late. And some medical stocks. And some drugs. Did I say drugs? I never had those on my front screen. Didn't have to. Well, this week,

we have been telling you that, oh, our front screen is losing some names in that semiconductor artificial intelligence space. And they've been trading, what have we been saying to you, wide and loose? That's what we've been telling you. Wide and loose. Wide and loose. What is that? Well, let's picture something.

a stock is traveling up from, let's call it, 7.30 to 1.30 in the morning. Trajectory. And it's nice guideline. Then it stops going up. And then it drops heavily. Gives back a bunch of that. And then it rallies right back up.

And then drops heavily. But rallies right back up. Drops heavily. Not only round. rallies right back up, it goes into new high ground and then drops back a lot. Wide and loose. What we have been telling you is often, not all the time, wide and loose leads to a change of trends. Because there were no sellers fighting on the way up going from 730 to 130 on a clock,

and that wide and loose trading all of a sudden has sellers showing up, indicating they are fighting the buyers now and are making hay. And often, as we said, leads to a change in trend. And in the last days, we've been losing names. names that are broken support in semiconductors, microchip, monolithic power, rambus, cirrus logic, analog devices, diodes, I can do more.

And the wonder was, are we heading for something? Meaning a damn good correction in the artificial intelligence and the semiconductors that they tell us, just keep buying. So yesterday was a real bad day for the semiconductors after a real good day,

wide and loose, not knowing what we come into today. And frankly, they kind of opened today not bad. In fact, if I am not incorrect, the semiconductors today opened up a little bit. But at 10 o'clock, see ya. You ready?

The socks down another 913 today, almost 7%. You have to drop in 6% yesterday. You ready for this? The socks has gone from two days ago, 1433. three to 12443. Last I looked, that's 1,900 points. Last I looked, that's almost 16% in two days. And by the way, it's 3.20 p.m. That's the semiconductor index. And of course, that contains stocks. You ready? I'm going to list a few. The ones that you have heard about, I'm going to list some semis and some AI. That'll be up now. Next, on this 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 complimentary portfolio review. The number to call is 888-4-2-5-59. That's 8-8-5-5-9.

That's 888-4-22-55-9. Investment Advisory Services offered through Coltbaum 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. Okay. I hear we got a little crackling. Sorry. Let's go. Mike Ron. And we're just going to tell you the last two days, not even from the highs. Micron has gone from $1,168 to $955.

About 20%, right? 19. Sandisk, which is not a semi, but is, you know, has gone from 2280 to 1707. 570 points. Not kidding. How about AMD? Which by the way, broke out to new highs two days ago.

About 584 to 506. 78, 16%. You've heard of those names, right? How about Intel? Intel has gone from New highs two days ago. 142 to 118. 17, 18.

percent, right? How about Corning? And this one's kind of amazing because it was strong. Corning's gone from 272 to 194. Holy crap. How about Marvell? 300 to 238. How about Seagate? 1,000 to 804. This is just a the last two days, not from the highs necessarily. Western Digital. This one's really not from the highs, but 664 to 532, the high was 800. The very strong equipment stocks.

ASML, which is down 87 bucks today, has gone from 2000 to 1756. Even stronger applied materials is gone from, and this is two days ago. The high of 740 to 587. Semiconductor's. Namedia is not going to move like the rest, but NVIDIA is trading down at the 200-day moving average. Caterpillar, that's an AI stock. That was doing very well.

It was new high on it two days ago. A thousand and seventy three to nine fifty two. What is that, twelve percent? 11, 12. And is down 39 today. Construction down 144 to 1720 was over 2000. Construction STRL down 85 bucks to 691. AGX down 71 bucks to 693.

That's 10% plus drops. simple O-N-T-O. I bet you don't know that one, right? Was New High Breakout two days ago? Not making this up. 360? Excuse me, 387 to 298. How about Terrigine?

488 to 362. Two days. Do I need to do more? I think I've done enough, right? It is our thought process, and I want you to listen carefully, because we're not kidding, that the wide and loose action of the last two to three weeks inclusive, some names breaking out to new highs, was the topping process for the semiconductors and the artificial intelligence trade. and it has topped for now, notwithstanding some violent bounces to lower highs for now. This also includes symbols like light.

Remember that one, right? That's gone from 185 to 714, about eight weeks. A coherent, arrow electronic, Sienna, Celestica. And of course, things that never even got going, you really need to be careful about things like core weave that have been taunting and shouting about forever. And when things change again, we'll let you know. How low do I think this correction can go? I don't know. How long does it last?

I don't know. What I do know is it became the most over-owned trade I have ever seen. The semiconductors on this move, the most overowned trade I have ever seen. And when things are overowned, the most they have ever been, and then things turn, the overowned first have to come off. And that's where you get the violence of these moves. Be very careful. Listen carefully.

Be very carefully. because all the technology analysts will just say, don't worry, everything's okay. Maybe it is. They're just guessing. What will need to be seen is number one, defense. Defense. You know what defense is?

Stop going down. find an area, a price area. Don't want to go down any far. Defense. Or, or a real washout. A selling climax. But we just started the top.

So one would suggest we're not there. They're going to be trading vehicles right now. And may I state for the record. If you trade them well, you can make hay. Very well. If you trade them poorly, you will lose your arse. And when I say if you trade them well, oh, you're going to see 5, 8, 9, 12% moves before you say boo. Up next, we'll continue.

And where is the money flowing? We're listening to. America is talking. Investors edge. He's got to be pleased with that. The crowd is just on its feet. Here, he's your Cinderella boy. With Gary Colbomb.

It comes highly recommended. You're going to feel better if you talk to. And welcome once again to Investors Edge. Let's talk fundamentals of the semis and the artificial intelligence. Remember what we said to you. They've been moving up on the spend, which is being created by debt as well as entities. I have questioned for a long time on all this spend, how are these companies going to make any money?

And I've always wondered what would happen if that or slows or comes down. Well, I have not heard anything yet, but we've seen these stocks top from a wide and loose. And let me define wide and loose for you, okay? I'm going to pick one out for you. I'm going to get a good one. So it's really definable, really wide and loose. Let's see what I can find.

Seagate goes from 800 to 1145, down to 950, up to 1100, down to 900, up to 1,000, Is that good enough? You catch that? That's a good one, right? Let's see if I can find another one. I think I can find a better one. Hmm. I'm thinking, I'm thinking.

Actually, I think that explains it, right? Oh, yeah, Marvell. How about this one? How about going from 200 to 324 back to 240, back to 320, back to 250, back to 350, back to 330, back to 2.30, back to 2. Okay, now I'm done. Wide and loose. Very freaking wide and loose.

And what we will do here every day is let you know where they are. Let you know where they stand. Because if you're a believer, this is not over, well, they're going to go much higher over time. But we've hit a moment. Now let me stop there. In the past days, we have been telling you about pharmaceuticals. I don't usually talk pharmaceuticals. Biotech. I don't usually talk biotech. Insurance. I don't usually talk insurance. Some health care names. I don't usually talk healthcare names. That is where the money is flowing and flowing very well now. Where else? The Dow. What do we tell you when the market gets a little defensive? They buy Dow names.

But something else is going on here. It's what's they're moving into the Dow. First off, biotech. When you got a chance, go look at the IBB broke out six days ago, one, two, three, four, five, six, seven days ago at 180. It's 194 already. It's a biotech ETF. Go look at the BBAH. Broke out just three days ago with 203. It's already 210, and that's bigger biotech. The only biotech in the Dow is Amgen, up 10 today.

With the NASDAQ down 285 and the NASDAQ 100 down 580. It's up 10. 65 down points. Biotech. Drugs. In the Dow is Johnson and Johnson. This stodgy, very no-growth company. broke out at 251, 4 days ago.

262 already. 11 Dow points. It's up 8 today. That's 60 Dow points today. Johnson and Johnson. Merck is in the Dow up three and change today. With the NASDAQ and the NASDAQ 100 being hit. But something else is going on.

Travelers, insurance just broke out. seven, eight days ago in 313, it's already 340. I saw the breakout. I didn't buy it. Travelers, changing the guard. You know what's down today? Caterpillar, 36 bucks. It's like 200 and something down points.

Why? Caterpillar is an artificial intelligence stop now. Caterpillar, in two days, has gone from, this is Caterpillar in the Dow, has gone from a thousand and seventy-three to nine-55. And then, and by the way, all state broke out, Chubb broke out,

I've yet to do the rest of the insurance stocks, but every one of them's up today. And some are pretty damn good. The drug stocks, ABV, I think I mentioned that once here. That broke out at 245, it's 260. in four days. That's where the money's flowing.

You're getting some money flows in the rails, other health care. Some oils are up today, but that's bearish. The defense stocks very strong today, but they've already had a big drop. They're not leading. Some of the consumer staples, food, beverage, tobacco, and all that's up today.

But that's no bull market. It's insurance, drugs, biotech, lesser extent rails, of the medical, and a bunch of downames. And one of the downames really has our interest, because it's trading like a penny stock. Apple, the NASDAQ's down 288, the NASDAQ is down $588, as I speak. Apple's up $14 today. Apple dropped from 317 to 275, and it's back up to 308 in six days.

I don't know what the hell is going on there except they're buying up Apple today. And I've said to you before, Apple's like this defensive technology stock. I don't know what the deal is. All I can tell you is whatever dropped it when they mentioned they're raising prices, the market's forgetting about. And maybe it's because they raise prices because of higher memory prices. And maybe the fact we're seeing the memory stocks plunge, are telegraphing, memory prices are going to come down. We'll see.

Apple, 14, that's 84, 90 doll points. So you have a day-to-day where, as I speak, it's 340, down up 400. But the S&P's down 26. And the NASDAQ's down 298, and the NASDAQ 100's down 598, because of the AI and semiconductors have become a bigger influence than the MAG 7, where Apple's up 14. Microsoft is up 6. Boy, the worm has turned.

That's your story. Things have changed. That's it. Now, do the drug companies and the insurance companies and the biotechs have earnings power? not like some of these other things, how far are they going to go? I'll give you the same answer to the downside. I don't know.

How long does it last? I don't know. We're just letting you know they're breaking them out and they're moving. And some of them. We saw the breakouts three or four days ago. We didn't play. We were worried about wide loose

and typically that affects the whole market. Instead, we had a, major league rotation out of that area into other areas. Now there's a couple of other things you need to know where money's flowing. Some of the worst software names that we have highlighted for you are bouncing, HubSpot, Service Now, Palantir, Intuit. The NASDAX is down 300 today and HubSpot's up for, into its up eight. We'll see if that lasts. Up next,

we'll continue along these lines. Big divergence day. This is the one only Investor's Edge. You're listening to What are we waiting for? Well, what are you waiting for? One, two, ready, go. Action!

Investors Edge with Gary Culper. Once again to Investors Edge. Let's continue. Visa. Visa. Just so you know, the stock has done nothing since March of 25 and three, four weeks ago was down to October of 24. Visa in the Dow is up 7% this week and is up 9 today. 60 Dow points. So MasterCard and Visa getting some juice And MasterCart is much, much weaker

than Visa. Much, much weaker than Visa. So a big gargantuan divergence, you're getting some relative strength, better relative strength than the investment brokers. Not sure that's going to last for obvious reasons.

A little better relative strength strength in the restaurants. ADP and paychecks, bear markets for a year. They're coming out of it. And by the way, on a crappy jobs number today, it's just money flowing from one to the other. And when I scan this weekend, I got to scan metropolitan life and progressive insurance and Johnson Johnson, Eli Lilly and Merck and Ab V,

and then as I scan the AI and semis, I look at them and say, holy crap, and we'll keep you informed. Why is this happening? I don't have a clue. Don't care. Just want to stay. calm and cool, then see where it decides to go.

I will also tell you the ETS for like South Korea will not do well. They have been semiconductor based. Other things today, just to let you know, Meta, big day yesterday, wasn't up 50-something, down 30 today. Meta gapped up on some news yesterday, and I, and I, I, I think I may even said on radio. What's that news? I also have to mention another one that's sticking out.

A little sore thumb from me. Tesla, it's down $33 today. Rallied up for three days. Down $33 bucks today. Giving it all back, and by the way, with volume. That's not great news. So those two are big guys. And Dell, another big name, down $30.

34 bucks today. That's been strong. But the story is, oh, by the way, while we're talking to Dow, McDonald's has gone from 341 down to 270. It's up 10 today. 65 Dow points.

So even McDonald's is contributing. Even McDonald's. So changing of the guard, I don't think it's a one-off. Again, I have zero clue how far, how long, both up and down. I just know what's in motion, up and down. I didn't mention software, right? Great relative strength.

And when I look to my right, Palantir up four, Autodesk up eight, guide wire up seven, HubSpot up four, Intuit up eight, manhands up four. So some workday up five, Viva Systems up six. So some of the weakest software names strong today. Strong software names on the flat side. Oh, and by the way, Kraut striped at a four-for-one split in case you didn't not. And as I speak, the Dow is up $450.

today and the NASDAX down 306 NASDAQ 100605 and on the Dow Caterpillar down 31 Cisco down 4.5 that's topped out and Vidiya

down 4 and you know what we think of that, dead money and Google has just been hit pretty good big name, that's on our void also. I repeat something, be careful. They're all going to come out and say, don't worry, just buy. These stocks are over-owned and under pressure. And until they get to some equilibrium of

ownership, I'd be careful. And we'll stay on top of it. Why? Because there are some great growth names in there. But we will have a question of on the that growth going forward. But to be repetitive, biotech, drugs, other medicals, lesser extent, rails, insurance, dang, other areas are stronger today, but not feeling the big juice like the names I just mentioned. And they're a big help to the Dow. And on Apple, beats the hell out of me. In the Dow today also, Boeing up seven,

American Express up four. Oil's bouncing, Chevron's up three. Even Disney is getting the money flows. And that's been comatose. Goldman's flat, JP Morgan, flat, Coke's up two. I mentioned Microsoft up six. Even Nike's up one.

Then they report crappy numbers. Oh, Proctrine Gamble up four. What a difference a couple of days make. And remember, the Dow can keep going up and not the S&P because of the major influence those names have on the S&P in the technology arena. You all have a great July 4th. Be careful with fireworks. If you travel and stay safe, until Monday, have a great one. And when you get home, make sure you hug your children.

Good night, all. Peace out. 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 Garyk.com. That's GaryK.com.