Investor's Edge with Gary Kaltbaum - Week Ahead [09.08.2025 w Adam Sarhan]

Episode Date: September 8, 2025

https://garykaltbaum.com/

Hey, it's Ryan Sechrest for Albertsons and Safeway. It's stock up savings time now through March 31st. Spring in for store-wide deals and earn four times of points. Look for in-store tags to earn on eligible items from Celsius, Body Armor, ORAIDA, Silk, Capri-Sun, Bavarian Meets, and Charmin. Then clip the offer in the app for automatic event-long savings. Stack up those rewards to save even more. Enjoy savings on top of savings when you shop in-store or online for easy drive-up and go pick-up

or delivery. Restrictions apply. See website for full terms and conditions. Investors Edge with Gary Cultbaum. Straight talk about you and your money. Now from the BizTalk Studios, here is Gary CultBomb. And welcome once again to Investors Edge. I'm Adam Sarhan.

In for Gary Kay, who's out today. Today is Monday, September 8th, 2025. We have a great show for you tonight. As always, I want to thank you very much for being here. Before I dive into the show, I want to just give you a few housekeeping notes. and then give you some notes from Gary, and then we'll dive in and have a lot to discuss today.

So first off, this is a show about you and your money and all of the fun points in between. Just as a quick reminder, if you don't get this show in your city, you can go to GaryK.com. You can listen live or archive. We are live Monday through Friday, 6 to 7 p.m. Eastern. Also at GaryK.com. You can follow Gary on X, formerly known as Twitter

by just pressing the button, or his name is at Gary Kulp on X or on Twitter. Also at GaryK.com. You can subscribe to Gary's morning notes. sent directly your inbox every day. You can email Gary, ask about his money management services, or if you want more, a premium service is convictionleaders.com. That's Gary's premium service, where he shares intraday updates, daily market webcasts. He shows you charts in the webcasts. He updates you throughout the day on what he's seeing, gives a pre-market report, actionable ideas,

and a whole lot more. All of that's available at convictionleaders.com. All right. If you know some Gary, the 10 year keeps heading lower and that's good for the yields good recovery in some of the semiconductor stocks over the last week or so still needs plenty of work and then we're getting some good reactions from big things like Broadcom, ticker symbols

AVGO. That's more or less the highlights that I wanted, Gary wanted me to convey to you and then I just want to make sure I'm not missing anything else. No, that seems about right. All right, perfect. So that's that. Now other news when I did the show, I think it was last time,

I'm in the week's days. When I did the show a few weeks ago, just recently, I talked about breakouts and the importance of them. I mentioned breakouts and setups.com and where I built this basically a thing to help people find stocks that are breaking out and sitting up in real time. Got a lot of positive feedback from everybody.

So it's my pleasure. And the idea of listening to the market also resonated very well with many of you, at least that's what I've heard, people sending messages over to me and so on and so forth. So the idea that the market's speaking, let's talk about this for a little bit because it's important. And then our job is to listen. And then I'll go through some breakouts for today.

There were a lot. I think there were over 25 or 30 breakouts and over 150 set up. So I'm not going to go through all of them, but I'll go through some of them for you. It is to be able to understand that our job is to be in harmony with the market. Turn it. Harm money with the market's my little play on the word harmony. but really you want to be aligned with the market. For so many years, when I first got started, I used to fight the market.

And I used to get very heated. I was also way younger. I started trading as a teenager. But in my 20s, really, all this crystal, or these experiences I'm sharing started happening. And I realized that that gets me nowhere. In fact, it's a losing proposition. In our Wall Street language, ROI is return on investment. It gives me a negative ROI.

Why? Now I know that with some salt and pepper in my hair and a little bit, you know, a few more decades under my experience under my belts. You know, you learn certain things, right? So one of the biggest things is that the market speaking and my jobs are being in harmony with it. So how do we make money? If that's the ultimate goal, think of it like this. First principle thinking, right? If you go back and look at a lot of the big investors, you look at Elon Musk is famous for making this part of his. his business is that he always just simplifies things and when he's done he simplifies him some more

to first principles thinking what is the absolute necessity here to get the job done right in school they teach our kids and simplify fractions when you look at the market you know you're buying and selling stocks commodities currencies cryptocurrencies cryptocurrencies crypto whatever it is that you're buying and selling for the purposes of my conversation with you i'll talk about stocks but it applies to any freely traded market the idea is real simple is that you want to be able to be able to to make sure that you're way ahead of the game and that you have on you understand the principles right what actually moves a needle risk and reward it's it doesn't matter if you're buying Apple or Tesla or the video or you know

Bitcoin or crude oil or gold silver orange juice doesn't matter what matters is three important things first entry price where these are my three questions I ask before I enter, where am I going to enter before I enter? So entry price, exit price, if you're trading, long-term investing, different conversation. I'm talking about for intermediate term trading and less under that. You know, weekly charts, monthly charts, intermediate term positions hold it for a few months, even a few years, a few weeks, few days, you know, all that kind of stuff this applies to. You buy and hold it for 20 years, a complete different conversation. But for everything else, this applies. So when am I going to enter?

where am I going to exit? And how much am I going to risk if I'm wrong? And going into it with the understanding that if you're an active trader, most trades aren't going to work, and that's okay. As long as when you're wrong, the risk is small. And when you're right,

the wins are bigger than the losses over and big enough period of time. That's really it. Nobody that I know gets rewarded on their statements, their brokerage statements. if the company's earnings beat estimates, guidance went up or increased guidance or lower guidance or their volume went up or their price to book ratio or their P.E. ratio or their balance sheet or income statement.

You know, one thing shows up on your statement, on your brokerage statement. It's just price. So being in harmony with the market is so powerful. Now, asking yourself, what do you really want as an, investor or a trader is another superpower because it allows you to align what you're doing or what you want to do, your objectives, with your actions. If I want to make money, that's a whole different skill set and focus than if I want to be right. Notice, I'll say it again.

If I want to make money investing and trading, it's a whole different focus, mindset, skill set than if I want to prove that I'm right. When I first got started, I didn't understand that difference. I would just fight, fight, fight, and I want to be right. And that's all that mattered to me. I just wanted to be right. And, of course, I wasn't, and I would lose, and I didn't understand risk, and so on and so forth. So it's where you enter, where do you exit, how much do you risk when you're wrong? Those are my three magical questions.

And understand that would be wrong a lot, just like in baseball, the best baseball players averaged three hits out of ten pitches. So that means seven strikeouts. Okay. And they're the best of the best. Because it's asymmetric risk or reward. When they're wrong, they're wrong one. They're one out when they're wrong. When they're right, if they hit a grand slam, they could be up more than one, right?

This is one person on base, two people on base, and then, you know, whatever it is, right? Four is the highest. Three people on base and the actual batter. So that's four points when they're right if they crack a homer. And if they're wrong, they strike out. They're out one. That's big returns when they're right and small risk when they're wrong. So that's big.

Next, when you look at investing, not knowing, you know, it's uncertain, right? Nobody knows what's going to happen next week, tomorrow, next week, next year, whatever the case is. It's really important. How do you navigate the unknown? It's risk reward. Everything comes down to risk reward and then focus like a hawk on price. And that's why breakouts are so important. That's why stocks moving up on volume are so important.

That's what, you know, so on and so forth. Adam, I understand what you're saying. You want to listen to the market, be in harmony with the market. I want to make money more than I want to be right. Okay. My goal is to make money. Then ego is kind of pause, put it on the side for a little bit. Understand you're going to be wrong a lot.

And that's okay. Your trading has nothing to do with you as a person. It's nothing to do with your worth. Your sense of value. Your esteem, how you feel that day. It's important to separate it. And understand it's an infinite game. The markets are always going to be there.

They're going to outlive me. Now live all of us. And that's okay if you have proper structure, rules, discipline, and place to navigate that. This way, you don't have to go all in on one trade. Oh, I just got to get out. Then you take massive risk and the size of the position is way too big. And then you end up selling out when the market or the stock pulls back just a hair. because it's too big of a position for you, right?

You lose sleep at night, whatever. So sizing the position's important, having the right position is important, being in the leaders, and then being in harmony with the market, in other words, long and the bull market, and either out or short in a bear market. Really, that simple. And there's only three ways the market can move, or your stock can move, up, down, or sideways after you buy it. Literally, it's all the stock can do.

So for all things being equal, being long, I want to buy something, I want to go up after I buy it. Well, half you know if it's going to go up for sure. Nobody knows. But if it doesn't go up, I know I'm going to exit. And I know how much I'm going to risk if I'm wrong. That gives me structure. It gives me discipline. And if I follow those rules, when I'm wrong, I'm wrong, small, when I'm right, I'm right big, bigger than I'm wrong. Over time, it compounds.

That's a lot. That's a hope at least. It compounds and compounds and compounds. And staying focused on the leaders is super important. This morning. I took my kid, I take my kids school every day and we leave the house and my kids, my daughter's in the car. My son's going towards the, you want to check the mail. Up up next, I'll finish the story. We've got a lot more to cover it. I'm Adam Saurhan. This is the one and only investors edge. I'll pick up with the mail. 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 all individuals have the same needs, we'll carefully evaluate your personal goals to determine

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Don't pick the shiny little toys on the side. For example, if anybody has more than 10% of what they had for customer service 10 years ago, they're already five years behind it. If anybody is not using AI to make their developers who write software 30% more productive today, with the goal of being 70% more productive. Yeah. So we are not asking our clients to be the first experiment on. We say you can leverage what we did.

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spring in for store-wide deals and earn four times of points. Look for in-store tags to earn on eligible items from Celsius, Body Armor, ORA-Ida, Silk, Capri-Sung, Bavarian Meets, and Charmin. Then clip the offer in the app for automatic event-long savings. Stack up those rewards to save even more. Enjoy savings on top of savings when you shop in-store or online for easy drive-up and go pick up or delivery. Restrictions apply. See website for full terms and conditions. It's time to switch on the integrator units and get the brain cells working. You're listening to. Hey, this promises to be fun.

Investors Edge. The last bastion of quality programming. With Gary Coltbaum. It doesn't get better than this. And welcome once again to Investors Edge. In case you're just joining us, excuse me, or missed any part of the show, you can go to GaryK.com. You can rewind, fast forward, listen at your convenience 24-7 at any device.

All right, we left off with the mail. So focus, right? What's the point in the story? We leave. We're supposed to get in the call. and my son wants to go check the mail. I'm like, nope. What are we doing right now?

Going to school? Yeah. Check the mail after school. Getting that car. Life was, and I told them nicely, life is full of distractions. Same with the market. I mean, it's such a parallel,

unbelievable parallel. So many stocks going up, down sideways, this news headline, that news headlines, and most of them don't even matter. Yeah, sure. I'd like to go check the mail. He finds a fun checking the mail.

He's still young. He's still in elementary school. So, hey, it's a fun thing for little kids to do is go check the mail? Sure. It's even fun for adults to do every once in a while if we expect something good. Sure. But the time and place. We're trying to go to school. We want to beat the car line. Timing is very important, but more importantly, I'm trying to teach them how to stay focused. Of course, I did it in a loving fashion, doing it nicely, and all that fun stuff, and use it as an opportunity to learn. Before we open that door to go outside, the objective was to get

in the car. And then he opens that sign. He sees the mailbox. Mailbox happened to be open. That's what caught his attention. And he walked over towards the mail. Like, whoa, what's going on? Stay focused, right?

So I let him check the mail, of course. But I told him the lesson there is, okay, you want to stay focused. Same thing with the market. How many times I find the stock, oh, it's breaking out or, oh, it's going up, or, oh, it's bouncing off support or, or, or, or. And I just forget about it. And then it takes off without making. happens a zillion times.

Look, there's a leading stock right now, Palantir, ticker symbol PLTR, had a big run this year from April, from 66, all way up to 190 back in August, and now it's pulling into the 50 day. And it's just sitting there, consolidating nicely, quietly, right near the 50 last few weeks. All right, really boring. Nothing's happening in the last few weeks,

but that's normal. It's part of the process. Take a look at Robin Hood, H-O-O-D, is a ticker. are there. Again, these are not by recommendation. Nothing I say is any no investment advice is given. Everything is general informational purposes only. Investing involves risks and past performance, not indicative future results. No earnings claims are being made. And every other disclaimer, you think you can make. Right. So with hood, H-O-O-D goes from 29 in April, up to 117 in July, August, and then it pulls into the 50 day. Then a day like today, funders, rally off the 50 day. But the last few days, maybe last few weeks, quiet action right near the 50.

Now, what Pallantir gap up tomorrow and do that. I have no idea. But what I, it's again, like Gary says, it's a familiar photo album. When you go through photo albums, you're looking for familiar faces. When you go through thousands of thought charts, you begin to see patterns. You do it year after year, year, day after day, year after year. You know, so on and so, okay, great. I've seen this before many times. You know, Hood was a great setup. on breakouts and setups. Anybody wants to sign up, you feel free, Breakouts and Setups.com.

Plan start at 19 bucks a month, so I'm not trying to sell you anything and get it just covers the cost of the data and a little bit more so we can just make sure that the light stay on. But it's a tool that I wanted, right? I was tired of missing breakouts. I was tired of this, tired of finding set up.

And today with technology, I can automate a lot of it and working with coders for a few years, invest a lot of time and money into this thing, and here we go, it's ready to go, helps many, many, many people. The idea is be in service. So it's a tool that I wish I would have had way back when.

So here you go. It doesn't mean Hood has to keep going up. It doesn't mean that Palantir is going to go up. Both of them could roll over and get crushed tomorrow or take off and go tomorrow. But again, it's stacking the odds of success in your favor. That's listening to the market. That's staying focused, right? every day we've got a list of stocks that are breaking out and setting up the breakout so I'm prepared before the market breaks out anyone can tell you after the breakout sure I can look back and say oh Pounteer broke out three months ago but where was I that day and that's the value right as it's breaking out in real time here's one Amazon AMZN same situation went from 161 to 236 April to Julyish pulled back into the 50 day broke it for a little bit and then recovered and it tried breaking out today

it's right back to that 236 level. Good action. Doesn't mean it's going higher. It's just something that was on my list showed up today. Okay. That's what I mean by filtering out the noise. There's thousands of stocks out there, thousands of ETFs out there. I don't want a thousand stocks or 5,000 stocks or or or.

No, thank you. I want to focus on the strongest of the strong. Another one that was on the list today. Let's see. A lab, esterealabs, A-L-A-B. This is a semiconductor, fabulous stock. EPS ratings 82 out of 99. The composite rating is 99.

The relative strength rating is 98. Best rating is 99 for all of these ratings. So it's a highly ranked stock. Average daily volume is 5.6 million shares. It breaks out on volume to a new high. That's a good looking breakout, all-time high, by the way. So this stock went from, what was it, 47 back in April, all the way up to 199, 47, interestingly enough, back in early August, pulled back into the 21 day. This guy didn't even pull back into the 50 because he's so strong and then breaks out today on thunderous volume.

We basically move sideways for about four weeks. Since, let's see, he had an earlier break out of near 100. since July, when he first broke out of a nice long base, ALAB has been up every single week except for one week. And the one week, he ended in the upper half of the range. So again, it's listening to the market. Doesn't mean A-Lab has to double from here, a triple from here, or quadruple from here.

I just want to see the stocks that are breaking out. That's the market speaking. It's nonverbal. I understand that. But when you, you know, it's, connecting dots like the kids they draw that little dot dot dot da and they draw the whole thing and they get a flower they get a dinosaur okay great it's one dot at a time so basically you're in a situation now where the environment is is strong we're in a bull market it's really important to listen to

the market and all the time listen to the market back in march and april you know there's a complete different the market was in a complete different tune it was a complete different complexion like Gary says, right? So again, focusing on those breakouts, it's a way of staying focused, so I don't go check the mail and check my phone and text messages and this, that, and the other thing. No, I'm laser focused on leaders. Because again, I want stocks that go up after I buy them. So I want to find stocks that are breaking out and also stocks that are setting up to break out in real time, by the way. This updates all throughout the day. Pretty soon we're going to add extended hours, historical breakouts and some movers.

But for now, it's breakouts and setups. But we've got a lot of requests coming in, so we're going to do our best to accommodate. But again, you don't need that. You can just go online and go to any charging service that you do. But it's due in the sit-ups, right? Look for stocks moving higher on volume. Look, sort stocks all day by percent price change.

I want to see which stocks are up the most on any given day. Forget if they're breaking out or not. I don't care if it's rallying from a 52-week low, or it's a mid-level base, or if it's just up, up a lot. It's a great way to find out which ones are moving. That's where the money's flowing, especially if they do it on volume. All right, up next, we've got a lot more to cover. I'm Adam Sarhan.

This is the one and only Investors' Edge. Hello, hello. I'm Malcolm Gladwell, host of Smart Talks with IBM. I recently spoke with IBM's new director of research, Jake Gambata. We discussed his vision for the future of quantum. computing. At IBM research, what we always do is answer what is the future of computing, whether it's coming up with new algorithms, coming up with better AI, coming up with quantum, or coming up with just how do different accelerators go together. It's our DNA to answer the question of what is the future. Isn't it a perfect problem for IBM because you kind of need

to have a legacy of building stuff? Yes. Building actual physical machines. Yeah, it's why I came to IBM. I wanted the experience, the culture of building hard things that others have not done before. Where do you imagine we are in the timeline of this technology? There will come a point when it will mature. My cell phone is a mature technology at this point. How far are we from that point with Conton? By 2029, we'll build the first fault-tolerant quantum computer.

That is one that can run a very, very, very. large, large problem. To learn how IBM is building the future of computing, visit IBM.com slash quantum. 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 CBS 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 our store. We can't wait to meet you. Store hours vary by location. Hey, it's Ryan Sechrest for Albertsons and Safeway. It's stockup savings time now through March 31st.

Spring in for storewide deals and earn four times of points. Look for in-store tags to earn on eligible items from Celsius, body armor, or Ida, silk, Capri-Sun, Bavarian, Meets and Charmin. Then clip the offer in the app for automatic event-long savings. Stack up those rewards to save even more. Enjoy savings on top of savings when you shop in store or online for easy drive-up and go pick up or delivery. Restrictions apply. See website for full terms and conditions. You'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.

I'm highly recommended. You're going to feel. better if you talk to. And welcome once again to Investor's Edge. In case you're just joining us or missed any part of today's show, or if I went too fast, you can slow down. Fast forward. Listen on any device you want for free, 24-7 on GaryK.com. All right, market closed higher today. Nasdaq was up about 98 points to 21,798. The S&P 500 was up about 13 points to 6,495, and the Dow was up 114.14 points to 4195. And the Dow was up 114 points to 45,514. All that matters, and the Russell was up about three points of 2394.

So all that matters because, okay, let's take a look at the week ahead. We spoke about listening to the market, spoke about price volume. I can come back to that later, but I really want to just focus on helping you, again, everything I'm doing here is, I'm thinking myself like, what do I want to hear, right? These timeless lessons, helping you make sense of all of the incoming data and everything that's being just nonstop sent to us, right? So this week, big news, inflation. We're getting towards the end of the quarter. The next few weeks, the quarter's over, starts over October 1st. Okay, great. The last few weeks of September, or every quarter, really, earnings start to taper off. Doesn't mean we don't have any earnings. No, we do have earnings this week. Adobe's reporting

earnings. I believe, when is that? Oracle's reporting earnings. Game stops reporting earnings. Synapsis reports earnings, Chui reports earnings. So we have earnings coming out later this week, but not in the same, I guess, same intensity like we did at the beginning and middle of the quarter. Beginning and middle of the quarter is just nonstop. Boom, boom, boom, boom, boom, all the time, right? Now, slow and steady. So earnings tomorrow we have Oracle, GameStop, synapsis, no problem. Wednesday, we have the first reading of inflation. And last week we had the jobs report. This week we had inflation. Why does that matter? Because the Fed. The Fed has made it very clear that they're ready to cut rates, but how fast they cut? We don't know. How deep they cut. Is it going to be 25 basis points, you know, 0.25% or is it 50 basis

points, 0.5%, or is it 100 basis points? I'd be surprised if they do that. One full percentage points. I don't know. Nobody knows. We'll find out. A lot of it depends on this week's inflation data, right, because the Fed meeting is coming up. So after that, or later, you know, after inflation over that. So what happens? When you have a situation where PPI, the producer price index, comes out, that's kind of important because tariffs impact producer prices, but also that's on Wednesday, Thursday is consumer pricing, the consumer price index, CPI. So Wednesday we have the PPI, the producer price index, earnings are coming from Chewy as well. Thursday, we have the consumer price index in the morning. We also have Adobe and Kroger reporting earnings that day.

I don't know if it's before the open or after the close. And then Friday we have the preliminary number for the University of Michigan Consumer Sentiment. So it's a busy week, but the focus, go back to the mail, right? The focus will be on earnings. And then the Fed. Earnings from a few companies, Oracle, you know, Adobe, sure. But really the Fed, what does inflation mean for the Fed? That's what matters, because that's what's going to move the needle for the market. Remember, we're trading near an all-time high, and the Fed's talking about cutting rates. That's pretty aggressive considering typically, the Fed put was the thing they used to say way back when, where the Fed would cut rates

when the market was in trouble and the economy was in trouble. Now they're just cutting rates because they want to get ahead of it. I get it. There's no judgment here, right, wrong, up, down, left, right. I have nothing, no interest whatsoever giving an opinion about what I think the Fed should do or shouldn't do. That's not important to me. What's important is, what does the Fed do, but what's more important is how does the market react to it? The next Fed meetings on September 16 and 17, which is next week. So this is if we have inflation, next week we have the Fed meeting. So we'll see. If inflation comes in really hot, it jumps and it's really a problem that could cause the market to sell off because that means it'll

tighten the noose around the Fed's neck to cut. It won't be able to cut as much because remember the downside of cutting rates is higher inflation. So if inflation's high and going up, the Fed won't be able to cut as much and the market wants a cut. And it wants a few cuts, actually. If inflation's down significantly, it gives the market a sigh of relief because the Fed can cut. Really that's simple. So lower inflation, closer to 2% target, the more the Fed can cut. Higher inflation, the less the Fed can cut because the consequence of cutting rates is higher inflation.

So again, all that's the economic side of it. I'm the investing side of it. How does the market react? How does the market react? Mark goes up, down, or sideways? That's super important. The news come out and you'll see futures go up. The stock market go up that day, go down that day.

Sure, great, important. But is it up 10 points? Or is it up 3%? Is it up on no volume? Excuse me. Or is it up on heavy volume? And that's the next thing I want to discuss with you. So, again, the week ahead, we've got inflation this week and a few big companies

are reporting earnings. All right. Next week, we have the Fed meeting. Okay. the market's near all-time highs. The NASDAQ-100, the QQ. If we break out, the QQQ can break out. Remember, ETFs can break out.

Indecese breakout, the S&P-500, the SPY, or the DAW, the DIA, or the small-cap Russell 2000, IWN. All of these, again, just like a stock, an ETF can break out. And some breakouts work, some breakouts fail. And that's okay. That's also part of the process. And being able to navigate that, that, it's important.

Because if I buy a breakout, it fails the next day or even the same day. Look, Amazon this morning was a great breakout. By the close, it ended below the pivot point or the breakout point. So technically, it wasn't really a breakout today because it closed below that 236-53 pivot point. You're at 235-84 today's closed. Not ideal. You have a close at 250 or 240, 240, or 240? or two, you know, anything above that 236 pivot?

Great. Especially if it does on heavy volume, great. But if not, all right, that tells me something. And then if we start seeing a lot of those, oh, okay, now I'm listening. Other things I look for with the breakouts and stocks that are moving up on volume, which, by the way, you can access again anywhere. These stocks up on volume and then just sort and then look for breakouts yourself, which I did for years and years and years manually, is look for themes.

when I find stocks that are breaking out, what other stocks are moving? One that jumped out at me right at the open today, I found out on breakouts and setups, I went, oh, hold on a second here. Chinese stocks are pretty strong. NetTs, NTEs, NTS, another stock on Breakouts and Setups.com broke out today. EPS rating is 97, composite rating is 95. Relative strength rating is 88. Well, I said, oh, let me go look at FXI, which is the Chinese ETF.

That's setting up to breakout. All right. Let me go look at other Chinese stocks. I looked at Baidu. Showed up on the list today also. Huge gap up. 10519 was a high from a while ago. And volume in Baidu's been coming up really strong over the last 10 days or so. I think you've had only one down day since the end of August, since August 21st. Every other day has been up in Baidu, BIDU. I mean, it was up 6.5% today.

Already had a big move up. But still, big gap up today. Oh, okay. So I noticed Baidu broke out. Let me go look at some other Chinese stocks. Net Tees broke out. Well, Net Tees was a big breakout. Then I looked at Baidu.

They looked at Alibaba, B-A, BA, BA. Oh, lo and behold, that thing gapped up a few days ago, sat tight for three or four or five days. Oh, two, four days. And then boom, breaks out of a little three or four-day consolidation today, coming up the right side of a big base, Alibaba. B-A, BA, B. All that came from Net-T's. T-E-S. But then I did some things. I said, oh, okay, what else is moving here? I know these big Chinese stocks. I know the E-T-F, the F-X-I that tracks a Chinese stock market. Let me go check

them out. A few days ago, I think it was last week, T-A-N, solar stocks were just showing up on the list left and right. I said, oh, okay, let me go look at TAN. And lo and behold, tan broke out. Tans and E-T-F that track solar stocks. Okay, that was on Friday. got it housing x-h-b same thing happened there i saw toll brothers t-o-l breakout i think it was wednesday of last week or thursday of last week yeah i think it was thursday toll brothers broke out and then i looked at every other housing stock right away caught my attention l-enr lo and behold that was kind of edging out mereditch homes m-t hr breaking out or broke out as well this was a few last week when I was looking at it, and so on and so forth.

And then I looked at the XHB, the housing ETF, and oh, here we go. That broke out. Fed's going to cut rates, mortgage rates are coming down, should be good for home builders. I get it, simple theme. And again, so on and so forth. The detective work kicks in, finding stocks, putting the pieces together. All right, of connecting dots. Up next, we've got a lot more to cover.

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Time now through March 31st. Spring in for storewide deals and earn four times of points. Look for in-store tags to earn on eligible items from Celsius, Body Armor, ORA-Aida, Silk, Capri-Sun, Bavarian Meets, and Charmin. Then clip the offer in the app for automatic event-long savings. Stack up those rewards to save even more. Enjoy savings on top of savings when you shop in-store or online for easy drive-up and go pick-up or delivery. Restrictions apply. See website for full terms and conditions. What are we waiting for? Well, what are you waiting for? One, two, ready, go. Action! Investors Edge with Gary Kulp. And welcome once again to Investor's Edge. In case you're just joining us,

or miss any part of the show, you can go to GaryK.com, rewind, fast forward, at your convenience 24-7, all for free on GaryK.com. All right, so we spoke about the importance of listening to the market. Week ahead, inflation's coming up this week.

Next week, we have the Fed. sprinkling a few companies reporting earnings. And we spoke about breakouts, listening to the market, spoke about the three most important things in investing. For me, at least, it's entry, exit, and then risk. Where am I going to enter? Where am I going to exit if I'm wrong? And how much are I risk if I'm wrong from entry?

And then the risk, the other side is my overall portfolio. And that's where the sizing comes in. In other words, if I have a $100,000 portfolio, I risk 1%. If I lose on this trade, I'll lose $1,000, based on that example. Okay. If I put a 10% stop below my entry, which is wide, but if I'm just giving you, again, simplifying to illustrate the point, let's say I buy it at 100, my exit is at 90, then I can realize, okay, if I'm going to lose $1,000, I know I'm going to buy 100 chairs

because 100 times 10 is 1,000. Okay, that's sizing, right? If I want to take a bigger size, smaller risk, you can do whatever you want, obviously. But again, just trying to illustrate the point and help you understand that, oh, there's difference between entries, exits, risk from entry, risk for your overall portfolio, so on and so forth. So then we spoke about breakouts, how to listen to the market, how does they focus, laser focused on leaders and leaders breaking out because there's lots of leaders, right? I want to find the ones that were the markets just compelling, like ALAB,

ALAB, right? That moves higher on heavy volume today, breaks out, okay, it's average volume there is 5.6 million shares. Today you had almost 10. 5.6 is the average for ALAB, ALAB. Today you have a almost 10, 9.5. That's the big investors buying the stock. NetTs, N-T-E-S, right? Or net ease. Chinese stock. Okay, great. 733,000 shares on average. Today you break out to a new high on 1.1 million shares. Again, average volume 733, 733,000. Today you broke out on 1.14 million shares. Not Mary and Uncle Bob doing the buying, like Gary says, right? And it broke above resistance. For the last few months, every time net T's and TES got above, let's say 140, every time got near 141, it would sell off. It got as high as 139, sold off down the 122, bounced again to 138, 137, fell down to the 50-day moving average.

Finally, today, gaps up and does it on volume. Again, that's the big institutions doing the buying. Now, if this rolls right over tomorrow and fails, so be it. That's okay. It could happen. but if it keeps going, hey, that's important. Gold, GLD, another one that broke out. This was two Fridays ago, a week and a half ago, whatever it was, two, four, five trading days ago, and six days ago.

So let's go, I think it was two Fridays ago, but not last Friday the Friday before. But either way, recently, GLD, look at a ticker symbol, GLD, it's gold, broke out of a very nice, long, multi-month base going back to April. goal another thing to do is sort by percent year-to-date change so I look for leaders I want to sort them by strongest stocks strong as ETF strongest markets up year-to-date goal I believe is up two times maybe even three times the S&P 500 this year in 2025 big rally move sideways for months back into January February rallied again to April move sideways all the way up until August and then boom broke out and now so far the breakout's working I'm not going to buy it up here it's extended, but the day it broke out, I want to see it. That's an example of a good breakout.

Now, let's see if it works and doesn't work, it can roll over and fail. Who knows? All I know right now, that's a good example of a breakout that worked. And if the breakout fails, let's say, you know, you're trading between, I'm going to create a hypothetical example here, 100 and 105 for six months. Every time it gets to 105, that's called resistance, it sells off to 100, that's support, and then bounces to 105 resistance. Support is 100. Six months later, finally one day, breaks above 105 on monster volume, that tells you it's not Aunt Mary Uncle, you know, Bob doing the buying. So that's important because that tends, if that works, that's how all big stocks double and triple and quadruple. They have to event, you know, just about every stock I've ever studied, broke out of a

base. Could be a short base, a few days base, a few weeks or a few months. But they break out, they go sideways, break out, go sideways. And that's how we got the expression. The market takes a stairs up and the elevator down. Stairs up, goes up, sideways. That's a stair. It goes up again, breaks out, goes up, sideways, breaks out, sideways, so on and so forth. So that's, again, some of the things I look for. Up on volume. This is pretty much a free scanner. You can do it anywhere that has price and charts, and it's a free scanner.

You just search stocks that are up the most in any given day, sort of by price percent change. And that, again, tells you if you have heavy volume coming into that stock, even if it doesn't break out, that, oh, okay. that's important. Something's happening, right? In that space. Doesn't mean it has to keep going up, but something's happening in that space. And then I want to know, right? Noted, right? I want to make sure I know, like I said noted, I want to make sure I know where the money's flowing at any given time. Because I want to be there. I'm not going to catch them all. It's impossible. I don't have to.

That's the beauty of what we do. You don't need to catch every single strong move. ever. I mean, it's just almost, it's never going to happen. Yeah, I don't say never often, but it's very, very difficult for that to happen. But that's okay. You don't have to. Again, just being able to stay focused is a superpower in this business, in life too. So a few other ones. Hood, we spoke about that, Pallantier, other things I look for, big rallies up and then pullbacks into the 50-day moving average. CPNG, another example. This one broke the 50, but had a big rally up from 19 to 31, April to the summer, move sideways for a few months, pulled in undercut the 50, but moved sideways and then exploded higher today on volume.

This one I found by just looking at stocks moving up on volume today. You know, another one that's up big today that just happened to jump out at me, SATS, EcoStar. SATS, it's not breaking out today, just up on volume today, sold Spectrum to Starling for billions of dollars. All right, to avoid some kind of government breakup or whatever they had going on. All right, noted. Casey's general stores, C-A-S-Y. One other stock that was up big on earnings, sorry, up big on volume today. I believe they report earnings today as well. C-A-S-Y. Up big on volume. Average volume here is 263,000. They had over a million shares today. And it's kind up the right side. And they gapped up big back in June. Again, it's just putting the pieces

of the puzzle together. Build a bear, BBW, up 11% today. Huge move up. Extended. I'm not buying it right now, but I saw it when we reported earnings a few weeks ago and then pull back and then boom, took off. All right. Helps me put the pieces of the puzzle together. All right, believe that's all the time we have for today. As always, I want to thank you very much for being here. This is a great pleasure. And hopefully I'll speak to you again soon. Take care, everybody. This has been Investor's Edge with Gary Cultbaum on BizTalk. To listen to past episodes or to get in contact with Gary, go to GaryK.com.

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