Investor's Edge with Gary Kaltbaum - We Need Better Action

Episode Date: June 27, 2022

More Info At: http://garykaltbaum.comMore

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Now from the BizTalk Studios, here is Gary Cultbaum. And welcome once again to Investors Edge. I'm Adam Sarhan in for Gary Kay, who's out today. Today is Monday, June 27, 2022. We have a great show for you tonight. I want to thank you very much for being here. As you know, before we dive in, this is a show about you and your money and all the fun points in between. Just as a quick reminder, if you don't get the show in your city, you can go to garyk.com.

You can listen live or archive. You can pause the show, rewind it, fast forward, listen on any device you want. 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. And you can subscribe to get his morning notes sent for free. or ask him any questions. You can email Gary, ask him any questions about his money management services or anything he posts on GaryK.com.

If you want more premium content from our good friend, Gary Kay, you can go to Convictionleaders.com and sign up there to his premium membership website, which I'm a member of. I also help him with it, and it's a fantastic service. Gary updates members several times a day on his thoughts on the market, lets you see the market from his point of view, and just about every night now because of what's been going on with the market. He updates members with in-depth webinars, where webcasts, where he dives in deep

and shows you what he sees. He'll show you leadership. He'll go back and show you market precedent from prior bear markets and shows you what's working, what's not. He pulled up a chart of 87 the other night and showed LA Gear and Walmart and all these stocks that were breaking out before the market had bottomed after the 87 crash and then the big move afterwards and the 98, you know, Asian long-term capital management crisis and so on and so forth. So it's a really, really great service. Strongly recommend it, that's convictionleaders.com. So what's going on on Wall Street today?

And let's make some sense out of what we're seeing in the market. First off, as Gary's told you, for the last six, seven months now, if not more, since November of last year, really, we're in a bare market. For all intents and purposes, and, you know, you want the S&P to befall 20% from a high. That happened. But before that even happened, just a few weeks ago, Gary's been on this like white on rice for you. And he's kept you out of harm's way if you listened, for the most part, done a phenomenal job of notifying you of say, the dominoes are falling one by one. And that is super important because it's very easy to be a Monday morning quarterback. Trust me, I've been in this business.

I've been trading since the 90s. I started the business professionally in 2004. I've come across all walks of life. And I can tell you, there's very, very few that have. have the ability to go above and beyond like Gary does consistently cycle after cycle after cycle. So that being said, you know, a lot of people come in with the Monday morning quarterback and say, oh yeah, see, I told you. In real time, Gary does this every day. As you know, since you're listening to his show, every day, he shares his thoughts on the market and it's recorded and you can go back

and listen to everything. He's an open book. I love that about him. So that being said, we're in a bare market, which means what? Big picture, the path of least resistance is down. Now, that's important to understand because you'll get counter-trend rallies, you'll get these bare market rallies. But for the most part, what happens here is that they tend to be sold into. So typically in a bull market, the market rally strong, pulls back for a little bit of time, and then rallies again, makes a higher high and then keeps going, and then eventually it pulls back again, or it moves sideways to digest that move, and then followed by another leg higher, and so on and so forth.

That's a definition of an uptrend. is a series of higher highs and higher lows. It doesn't matter if you're trading stocks, ETFs, mutual funds, individual ones, if you're trading crypto, commodities, currencies, or whatever, anything else in between. Anything with the price that is publicly traded freely in markets and can be plotted or can be put on a chart,

an up trend is a series of higher highs and higher lows, and a downtrend is just the opposite. It's a series of lower highs and lower lows. And right now, since November of 2021, we have a series of lower highs and lower lows. And every time the market rallies, you see that rally be short-lived, and then you see selling show up, and it's followed by another leg down, which is just the mirror image, ladies and gentlemen, of what? Of a bull market.

So, folks, when you have a situation where the market, instead of going up, remember, marketing can only go up down or sideways. That's it. I like to keep things very, very simple. And I outline all this, by the way, in my book. I strongly recommend it. It's called psychological analysis. You can get it on Amazon. It was number one on Amazon for six straight weeks after it was published back at the end of December and early January all the up until February of this year. I'm very happy about that and very humbled by all of the great feedback I received from it. I'm very, very happy to be able to share my thoughts. 20 plus years of observations and learnings in the market or with everybody. But I'd like to keep things real

simple. Up, down, or sideways. Lower lows and lower highs, there's the downtrend. Well, five-year-old could see a chart going down and you could see a chart going up. So I'm not minimizing the work in any way, shape, or form, but I'm trying to help people simplify their thinking, especially when it comes to a complicated subject like the stock market. Why? Because it's very easy for our minds, a human mind, to overcomplicate things. But successful investors, believe me, I know, I have a show where I just interview large money managers, CEOs for timeless investing advice. It's called Smart Money Circle.

You can get, you go on Amazon or, sorry, Apple or Google or YouTube or go to SmartMoneyCircle.com and any Spotify, it's all over the place. And I've interviewed countless, big, huge, super successful CEOs, money managers, yada, yada, yada, billion dollar money managers, private equity guys, you know, gals, everybody in between.

And the ability, the common thread, they all do things differently, but they respect risk. Right? But the common thread is that they all understand very clearly

and very concisely their strategy. And they can implement it over and over and over again. Gary's just like that. So, when you're analyzing markets, any one day

in the market, for my humble opinion, doesn't really matter a lot, unless if it's a huge outlier up or down. But for the most part, I like to step back and look at the forest, look at the weekly charts, the monthly charts, because that filters out a lot of the noise. Today was a mostly down day on Wall Street. But that comes after a very strong week last week.

Tech stocks, which led on the way up last week, led on the way down today for the most part. and interestingly enough, when you look at small pockets of strength, again, when the markets are going down, one of the best things to do is find the stocks that have high relative strength and or are not going down. Instead of going up. I'll go through some of those names also for you later in the show, because that shows you what the big institutions are defending and or are buying. And that is a very good key, a subtle but very, very important key to know what to expect after this bear market ends. And just like the sun will come up tomorrow, this bear market will end.

I've gone back and studied cycles, economic boom and busts and markets going back to the third century. There weren't a lot of markets back then, but economic cycles were going back that far. And I've been to the Library of Congress in D.C. and spent more hours than you probably want to know or care looking through and studying old cycles. The one thing that's, you know, the markets change, the bubbles change, the asset prices change, the language has changed. But the one thing that never changes is human nature. It stays constant. You walk into a crowded theater, yell fire, what's going to happen? People are going to run.

They're respective of their language, their education, their race, their, you know, enter any other possible thing you can think of. Fear, greed, drive markets. Prices go up. People, phomo, fear of missing out. I need to get in. I need to get in. money to get in. Prices go down, scared, sell, sell, sell. So it's one of those situations where bear markets happen and bull markets happen over and over and over again. It's just the way the

world works. There's booms and there's busts on Main Street. All a bear market is is a bust. It's just on Wall Street. And all a bull market is, it's booming economic times on Main Street. It's reflected in the market. It's all the market is. It's a bunch of stocks of companies that trade on Main Street. And the market is a forward-looking indicator, meaning they look to the right of the chart. They look three to six, nine, 12 months down the road.

And lots of times the market moves before the news hits what Main Street. Because the market sniff is a forward-looking mechanism. And one of the reasons why a lot of people get caught off guard with markets is because they're always looking backwards. Well, the economic data said X, Y, Z, or the earnings report said L MNOP or QRS or T UV, but those folks are tell you what already happened. They're backward looking indicators. The market's forecasting the future on Main Street.

So when you see housing prices or housing stocks, excuse me, go down 40, 50, 60 percent in a few months. And meanwhile, housing prices haven't, but they stopped going up. Odds favor. Now, anything is possible. Housing prices are probably coming down. Simple. Look at the transportation stocks. By the way, the ETF for housing is XHB.

If you want to go look at Home Builders, you can look at Hovenian HOV, or Beezer Homes, BZH, or Lenar, L.E.N. Tol Brothers, high-end home builder, TOL, Meritage Homes, M-T-H. And you can see double-digit losses across the board for just about all the homebuilders. Up next, I'll talk transportation stocks. A lot more about what's happening on Main Street and Wall Street. 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. 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 8-8-5-59. That's 888-4-22-55-9. investment advisory services offered through Colbaum Capital Management.

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including how precious metals can be held in an IRA. For your free wealth protection guide, text IHeart to 50505. And with a qualified purchase, you could receive up to 15,000, in free gold or silver. Don't wait. Text Eyeheart to 50505. Online reviews say I'm steep, rocky, and a difficult trail. Next time I'm going to say, not if you're driving a Toyota truck. We know what we're made of, Toyota Trucks. 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 bass of quality programming with Gary Coltbaum. It doesn't get better than this. And welcome once again to Investor's Edge. I'm Adam Sarhan in for Gary Kaye, who's out today. Today is Monday to 27th of June,

2022, and I can't believe, I love when people say that, I say it myself, the year's almost halfway over. Time indeed does fly. Enjoy every moment. Folks, the one thing that we have that we can't buy more of his time. It's the most valuable asset in the world. Enjoy it to the fullest. Enjoy it to the fullest. This bill market will end and a new bull market will be born. It's just the way the world works. There's always opportunities to make money and understand the deeper this bear market goes. The more, what's the word, the good word to use? The hungrier I get, the more excited I get because of two reasons. One, not a harm's way. And two, it just sets a stage for a huge boom afterwards.

It's just the way the world works. The question is, will, quote, unquote, the proverb, you be there. Not you specifically, but will you be there kind of a thing. Right? I know I will. I'll be taking advantage of it just like I did after COVID low and after the 09 low. And even after 2000, after the 2000 low was 0203. I came in late to that bull market.

In other words, I doubted it. I learned that lesson really early. I started trading in the 90s. I saw the dot-com boom. And then I saw the bust. And I started trading professionally, became a broker and all that kind of fun stuff in 2004 and five. And I saw many people lose a lot of money. And just around that time, the market had bottomed in October vote to.

And in 2003, it was the Bush and Iraq and all that kind of stuff, but the market was ripping. And then four, when I started quote unquote doing it, I saw lots of people had accounts at a million, two million dollars, go down to like 200,000, 150, 300,000. other people, not me, had managed their money, just did nothing during the bare market. And these people never recovered. Older retirees, I was living in Boko-Roton-Flor at the time, and it just broke my heart. And I was like, wow, the one thing that was just ingrained in my psyche is to respect risk. And I'll get back and talk about the transportation stocks in a second, but I do want to take a moment and talk to you about the importance. And I mean, mui importante, I don't speak Spanish, but I hope that's how you say it and the nor pronounce it.

It's extremely important. let me tell you in English, to always respect risk. And in fact, one of my principles of investing, which I outline in the book, psychological analysis, that is, and if you want to get it by all means, please feel free. And if you like it, please leave a good comment or a good review or whatever you want to do. Or let me know. You can email me at info at findleadingstock.com and love to hear from you guys. Is to respect risk.

Anamped investment system, AMPD, and D is defense first. If you respect risk, meaning you know where you're going to exit before you enter, how much you're going to risk if you're wrong, so on and so forth, you'll be light years ahead of the competition. Because most people out there on Wall Street, they only look at the reward side of the equation, and they just almost dismiss or hope that things are going to get better. Hope is not a sound investing system.

The best of the best, the best, and I'm telling you, respect risk. I hope you do too. It's really that simple. I can't control how much a stock goes up. I wish I could. I can't. But I can control where I enter and where I exit,

meaning how far I'm going to let the stock go down or go against me after I get in if I buy it. So I can control my risk. And if I do that, keep those losses small. Over time, I can do very, very well. And that's one of the secrets to this business. There's a few of them. That's one of them that I've learned.

It doesn't matter if you're an value investor or a growth investor. I had a GARP investor on the phone this morning. He manages about $800 million. And we're going on and on and on and on. And just the golden thread, if you will, think of a tree trunk. The trunk of the tree is respect risk. Now there's branches on the tree that all bring back to the respecting of risk. So when I evaluate a bunch of different things, managers or strategies or whatever,

people come to me all different shapes and sizes. It's just do you respect risk? It's just that simple. It doesn't matter what the strategy is. I like to say there's an infinite number of ways to make money in this business. Your job is to find one that works for you. We're all different. And once you do, hang on to it for dear life and follow it.

Because if you do, you'll be extremely wealthy and happier if you do. If you jump in back and forth and every few weeks, you try this, you try that. take a free trial here and then jump over there and then, you know, you just, you keep, it's like a pinball. You're just chasing the next shiny object. The ones that really get it are the ones that are able to believe in themselves, invest in themselves, and more importantly, they respect risk. And that, my friends, is super, super important, especially as we're in this bare market. So, spoke about the housing stocks.

Housing stocks are down bigly, for lack of a better word. Now let's talk about the transportation stocks, also in a bare market. pretty significantly. It went from 280 back in Q4 of 2021 down to a low just recently of, of where were we? About 205. That's a big decline. That's a transportation index. The average transportation stock went down more. But why am I sharing all this with you? Because of the fact that that doesn't happen during strong economic conditions in Main Street. That typically happens, declines in the transportation index. And by the way, the financials, XLF as well, transportation are IYT. The financials are making a series of lower highs and lower lows.

You are at 4170 in January, then you were at 4138, then you were at 401 in the XLF, then you were at 3831, then 3574, and now you're at 32. Those are the lower highs. I can read the lower lows, but you get the drift. They're also pretty much in a pretty severe and or strong downtrend. Semantics aside, you call it a bare market, not a bare market. You know, the average bank stock should be doing well when rates go up. They make more money. It's a bigger spread. But they're not because the economy's market believes the economy is heading into a recession, if not we're already in a recession, which is my belief. We'll find out

soon the quarter's over this week and then next week or the next few weeks we'll get, you know, the initial read on GDP. And if it's negative, then that'll be two back-to-back quarters of negative growth or negative GDP. which is technically the definition of a recession. But semantics aside, to me, it's not the letter of the law that matters. It's the spirit of the law. You can say, oh, well, technically it's not a recession. But meanwhile, earnings are down and stocks are down and so on and so forth.

Okay. Or vice versa, right? I've had so many people tell me. But the fundamentals, Adam, aren't there. The stock doubles. Okay. That's why I respect price. First and foremost.

You know, Warren Buffett's got two rules to investing. He goes, number one, don't lose money. Number two, don't forget rule number one. My take on that is just one rule, make money. Number two, don't forget rule number one. You can't make a lot of money if you have your money, you know, you don't respect risk. And you have a 40 or 50% or 50% drawdown. Your account falls by 30, 40, 50, 60, 70, 80%, 80%.

Like what's happened before in the market. A lot of these COVID, you know, state home stocks are down 60, 70, 80% or more. So financials, the market speaking, I always like to ask, are you listening? Up next, I'll talk more about what's happening on Wall Street. I'm Adam Sarhan. As always, I want to thank you very much for being here. 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.

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With the power and endurance of Toyota trucks, you can go to the most incredible places, like this valley where the echo does different voices. Hello! We know what we're made of, Toyota Trucks. We're new 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. Investor's Edge. I'm Adam Sarhan in for Gary Kay, who's out today. In case you missed any part of the show, you can go to GaryK.com, rewind, fast forward, listen on any device 24-7. I know I speak fast at times and I do my best to slow down, but there's a lot to cover in this whole little time on this show. So if you missed anything or you want to go back and listen, just go to GaryK.com.

It's free you, can listen, pause, fast forward, rewind on any device on GaryK.com. So, To continue our conversation here, what's happening? We've got financials down, transportation stocks down, right? We've got the housing stocks down. Semiconductors, SMH, down. 318 back in November, you're now at 2.15. That's the SMH. That's an ETF that tracks semiconductor index, the Philly Semiconductor index.

That's a huge move. Now the average stock in that group is down just as much. You've got semiconductor AMD, 164 down to 86. It's a bigger decline. You've got Navidia, NVDA, former leader, 346 down to 168. It went down as far as low as 155, and now it bounced a little bit. So I can go on and on, but you get to just. So just be respect risk.

Respect risk, respect risk, respect risk. So Gary's talked to you about the potential for a lot of a changing of the guard, if you will. The Chinese ADRs, FXI is one. Alibaba have gotten pummeled, I mean beaten down over the last 12 to 18 months, if not more. Government was doing a bunch of restrictive things. and I think Jack Mao, the Alibaba guy, had disappeared for a while and so on and so forth. It doesn't matter. Point is, what matters is, stock was in a huge bare market,

the same with a lot of other Chinese stocks, Bidu, Bidu, J.D., you know, so on and so forth. But they appear to be bottoming here. Why is this important? Because if they can bottom and indeed go higher, take a look at Bidu when you have a chance, BIDU. 15570 was an important high from a few weeks ago, and flirting with that tent. Today, if we can break out and go on volume and start another leg higher, this could be a major turn for the market.

Also, ARKK, was the leading indicator for growth-y-type stocks. It had topped out, a lot of the stay-at-home type stocks and gross stocks. This talked out back in February of 2021. The NASDAQ topped out in November of 2021. Same with the S&P and Dow shortly thereafter, right around the end of 2021 into early 20. 22. Meanwhile, Arc topped out in February of 2021. And now I was trying after what, I think it's like seven, eight, nine, ten months in a row. Look at a monthly chart of ARKKK, one, two, three, four, five, six, seven straight months down. You fell from about 120 down to 34-ish, 35, 37,

somewhere in that range. Let me check a daily chart, I can tell you. Yeah, 35, 10. And now you stay the last few months, you haven't made a new lower low, and you're trading right near this high of 4694. If ARC can break above $47, this is round up to 4704, 10 cents above that high of 4694, that's going to be a bullish sign. Because the FXI, which is China's stock market, or a good ETF that tracks China's stock market, went back, you can go back and look. It topped out just recently in January. It's February of 2021 as well. So you've got ARC topping out in February of 21. You've got China topping out in February 21.

And then, what, eight, nine months later, the U.S. market topped out. So if ARC and China are going to bottom now, I wouldn't be surprised if three to six, nine, ten months down the road or some point in the future, or even sooner, rather, The U.S. market bottoms, but we're not there yet. And there could be a chance you might be asking yourself, well, Adam,

what if ARC and China both bottom, but the U.S. market keeps going down? Guess what? That's totally possible. Anything is possible. We just look for probabilities. And all we do is just like the scientific method. You have a hypothesis, and then you test the hypothesis by just listening to the market, by putting the pieces together. Oh, well, wait a minute. If ARC and China both risk-on markets topped out, at the same time in February of 2021, and now they're trying to both bottom, and if they can get going to the upside,

guess what? Can that be bullish? Sure. And if not, if the price action of the market, the NASDAQ, the Dow, the S&P, doesn't confirm your hypothesis, in fact it negates it, then you're wrong and change your stance. Excuse me. Very, very simple. you're wrong change your stance and there's nothing wrong with being wrong in fact everything i argue is good with being wrong the faster you can admit you're wrong and cut your loss and move on the better why because you can find the next win that's it that's what this game is about this business it's finding the next w finding the next win the major indices are still below their 50-day moving averages. We did have what they call a follow-through day, a big accumulation day on Friday,

which confirmed a new rally attempt. Monday's down one day. It's not the end of the world. Volume was heavy on Friday because it was Russell rebalancing. It was one of the heaviest days of the year on volume. That's okay. End of month and a quarter. But we'll see if all of a sudden you get heavy volume selling or heavy selling and no volume, just heavy selling over the next few days, then that fall through day is pretty much negated. And keep in mind, the fall through day came while the major indices are still below their respective downward sloping 50-day moving averages for the most part. The S&P, the Dow, the NASDAQ, those three big ones are all below their 50 and below their 200-day moving averages. Most fall-through days, if you go back in history, that happen

below the 200-day, just they fail. I think back in 2000-2003. or 2002-ish, you had 14 failed follow-threaties that were all, most of them below the 200-day moving average. To be fair, I learned that from my friend Tom at BDumbFollowPrice.com. He gave out that great, great, great analogy there.

And I thought that was really smart. I was like, wow, one negative wisdom like that. Just because you have a fall-thirty doesn't mean it's a good signal, okay, all in, let's go 100% cash and go from being 100% cash to 200% invested day one. let the market prove itself. And you will have several failed fall-through day attempts during bear markets. The average bare market, I think, is nine to 12 months, 18 months somewhere in that range.

And you have a lot of failed follow-through days. So this one will give it the benefit of the doubt. But until you really see leadership emerge and it's going to be a new cycle of leaders, very rarely do you see old leaders from prior cycles lead, meaning the fang stocks, like face Facebook, Amazon, Netflix, and Google, very low probability that they're going to be leaders in the next bull market. They could be. Anything could happen, but very low probability.

Most likely there will be a new batch of leaders that will show up on the screens. They'll be like, wow, look at that big institutional accumulation. There's one called Credo Tech, CRDO. They're trying to make broadband wider or break barriers within broadband. So people can transmit, you know, just have more data go back and forth. New IPO came out in January of this year. Has an IPO-ish forming a little cup with handle type pattern, if you will. Not a perfect one.

CRDO. 1392 was a recent high. It briefly broke above there. Well, it got the 1390, so it didn't actually break out today. But it came really close. 1390 was the high today. And then it reversed, almost. immediately now it's down 7%. It's just indicative of the environment. It's not ready to go.

If this thing breaks out above 1402, you go a dime above that 1392 high, that'd be a really good looking candidate. A new stock. Now the group is lousy, to be fair. It's 190 out of 197, so it's a lousy group. And it's a thinner trader. The new IPO only has about half a million shares that trade on average, or 470,000. So it's not ideal, but it is something new, I'm giving you an example of a new potential leader that could be forming a bullish pattern. Relative strength is 89, means it outperforming 89% of the market. And if it blasts off above 14 or 1402 and does it on monstrous volume and continues to fall through to the upside, that'd be an example of a new leader showing up. But for now, just wait. There's no rush. Understand we're still in a downtrend

and time in a bear market is on your side. Talk a lot more stocks, Wall Street, and some Main Street. I'm Adam Sarhan. This is the one and only investors' edge. Struggling to see up close, make it visible with Viz. 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. With record U.S. debt, ongoing geopolitical tensions, and constant market swings. many people are rethinking how to protect their savings. Physical gold and silver have been used for generations during uncertain times to diversify, not replace traditional investments. Preserve gold helps Americans understand these options. Text iHeart to 50505 to get your free wealth protection guide and explore how precious metals may fit into your retirement planning.

Online reviews say I'm steep, rocky, and a difficult, trail. Next time I'm going to say, not if you're driving a Toyota truck. We know what we're made of. Toyota trucks. We're listening to. What are we waiting for? Well, what are you waiting for? One, two, ready, go. Action! Inverester's Edge with Gary Culpa. And welcome once again to Investor's Edge. I'm Adam Sarhan in for Gary Kay, who's out today. In case. In case. you're just joining us or missed any part of the show. You can go to GaryK.com and listen to anything that you missed or re-listen to anything that you want.

Pause it, rewind it, fast forward, so on and so forth. And I left off talking about new leaders and being patient in a bare market. There's no rush. I understand that. And you get a lot of false head fakes, if you will. Market's going to bottom, put in a low, and then it's going to rally. That's a rally attempt. You get a confirmation with the follow-through.

A big, heavy, up. you know, update at least 2% 1.7% or 1.5% or more on heavy volume. And that's a sign that big institutions are buying. And then what? You want to see follow-through. You want to see leaders, new leaders, that is, show up and lead the market higher. And if you don't, that typically means the fell through day will fail. And if you do, that typically means the market will continue to move up.

And sometimes, folks, it's just that simple. So again, keep things as simple as possible in your mind's eye. And ask yourself, do you want to be out wishing you're in? Or in wishing you're out. Again, I've been in the business since the 90s. I've come across many, countless people. And I mean countless. I'm a contributor at Forbes and my stuff gets picked up just about everywhere on Zero Hedge and Spotify.

And, you know, I can go on and on, but there's no point you get it. I've been all over, CNBC, Bloomberg. Fox Business, et cetera, et cetera. Interactive with so many people I can't even remember a tenth of the names. But what is the theme? Common theme. Is people are people or people.

People buy stocks they like. They'll justify it with logic, but the decision comes down to what they like. And they sell socks they don't like. Sometimes they have stop losses in that force them out, which is very good if you have rules to exit. But for the most of the most, part, people enter based on what they like. It's an emotion. But I'm not even aware of it. I

outline all that in the book, too. So in this past weekend's Finleading Stocks report, which is where I share my thoughts with whoever wants to listen, members, and whoever else, I'm Findleadingstocks.com. I talked about the fact that we're in a downtrend, and most of the idea, we had a follow-thadam Friday. We'll probe the idea, you know, test it, but put stops in in case it fails. And it gave some of my idea is a new leadership. CAL was one. It's buyable at 2994. You go up to 3004, somewhere in that range for an entry. It's trading, what is this thing, 5% or thereabouts below a 52-week high while the market is down, I think the Dow, let's go to the NASDAQ, is down about

28, 30% somewhere in that area, NASDAQ 100. The S&P 500 is down big as well. I think it's 25-ish percent or 22 percent somewhere in that range. And this guy's only 5 percent below high. It doesn't take a lot for CAL to break out and move higher. Again, this is not buying recommendations. I'm just trying to help people spot leaders and or potential leaders. Stocks that are acting well. The relative strength rating for this stock is a 98.

While the market is getting crushed, this stock is moving sideways. So ask yourself why. Again, it's a thinner name, just like CRETO, CRDO. It's only 806,000 shares on average are traded. But earnings are growing triple digits, quarter after quarters. Sales are up double digits in each of the last four quarters. Return on equity was 68.1% last quarter. And it's a shoe company.

They operate 186 famous footwear naturalizer and other shoe stores in the U.S., Canada, China, and Guam. Ticker symbol CAL. Calaris. Website is Calaris.com. I have no affiliation with the company. I have no

idea of anything else besides what I just told you. All I know is respect the price. This stock is trading

5% below a 52 week high, above its 50-day moving average, above its 200-day moving average. It's been moving

sideways since last June for a year. While the market's getting crushed, the last six, seven months, this guy's

5% below a 52-week eye. Won't take a lot to blast this thing off and have it go. If this thing breaks out on heavy volume in a good environment, hey, potentially could be a good leader. That's what I look for, because I get these questions all the time. What are you looking for? What are you looking for? That's what I look for. Another one, build a bear, BBW.

Weaker relative strength, it's only 74 relative strength, but earnings are growing double digits. sales are growing double digits. Return equity is 48%. That's huge. The stock is moving sideways for the last year and change. Thinner trader as well.

346,000 on average. Builderber. They make bears for your kids to go in and, you know, have stuffed bears. Beautiful company. I spoke with the CEO. She came on my show back in March

a few months ago on Smart Money Circle and she was phenomenal guest. Super optimistic, super brilliant. Stock is doing very well. The market's getting crushed. Stock refuses to budge. This one's down from a high. It's 2350.

Now it's at 17. So on a percent basis, it's down more. But if you look at it, it's still going relatively sideways while the market's been going down. Right? So when you step back and you can look at these stocks that are, it's just coiled springs or basketballs under water, and you've heard Gary talk about this.

It's not new, so to say, so to speak. Another one, go. GEO. This one is at a new high. Grocery outlets. They operate 415 discount. stores in the U.S. and they plan to open 36 more stores. And the rail of strength is 99.

It means outperforming 99% of the stocks in the market. Earnings aren't as strong as they should be growth-wise, but it doesn't matter. The stock is going straight up. Higher highs, higher lows. It's acting as if we're in a bull market. Back in March of this year, the stock really broke out and hasn't looked back since.

It's been above the 50-day moving average since March. really since the end of February, above the 200-day moving average since March. And if you want to see folks a good example, 1.2 million shares on average, just about 1.19 million. So it has liquidity. It's just a great example of strength. It's a really, really good example of strength. Now, it's not viable here, but put on the watch list and be patient. Wait for it to pullback.

Patience is an extremely important. an extremely undervalued asset on Wall Street and in life. So I hope you've enjoyed today's update on the market. Today's show, it's a pleasure to fill in. Hope to hear from many of you soon. Take your time with the market. We're still in a downtrend. Be patient.

And like Gary says, make sure you step back, hug those children, take care of those relationships, and time is your most valuable asset. Enjoy every moment. This has been Investors' Edge with Gary Coulouse. bomb on BizTalk. To listen to past episodes or to get in contact with Gary, go to Garykay.com. That's GaryKK.com. Online reviews say I'm steep, rocky, and a difficult trail. Next time I'm going to say,

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