Investor's Edge with Gary Kaltbaum - Week In Review [10.03.2025 w Adam Sarhan]

Episode Date: October 3, 2025

https://garykaltbaum.com/

Guys, it's no use putting it off. The best time for an underwear refresh is now. Tommy John underwear is designed for a perfect fit that stays put all day. Their zero-chafe thanks to four times more stretch than competing brands. And their innovative horizontal quick-draw fly is a game changer. With over 30 million pairs sold, there are thousands of men out there more comfortable than you. Don't settle for less. Go to Tommyjohn.com today for 25% off your first order with Code Comfort.

That's Tommyjohn.com, code comfort. Tommy John. Comfort perfected. Investor's Edge with Gary Cultbaum. Straight talk about you and your money. 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 Friday, October 3, 2025, and we have a great show for you tonight.

As always, we want to thank you very much for being here. Just some housekeeping before we dive into the show. As you know, 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 the show in your city, you can go to garyk.com, listen to it live or archive. You can also rewind, fast forward pause, all available on any device, excuse me, for free on garyk.com. I speak fast. I try to go slow, but there's so much to cover. So little time.

So you could pause and rewind and fast forward there all for free. 24-7 on any device. That's on garyk.com. Also listen to the show. You can email Gary, ask about his money management services or, you know, get his more notes sent directly to your inbox for free. You can follow Gary on X, formerly known as Twitter, by just pressing the button or searching up at Gary Colpom on Twitter.

And then, or on X, whatever they want to call up these days. And you can also email Gary, read his commentary, so on and so forth. Now, if you're looking for more, Gary. he has convictionleaders.com, which is a premium service where he shares what he sees in the market in real time with members, does daily market webcasts, and a whole lot more. All of that's available on convictionleaders.com. All right. So a few notes. It's a week in review. So I'll do some high level notes where I'll share with you for the week where we are. The month just started. I'll do a lot of review because it's really important, folks, when you're going through markets and you're going

through stocks, it's really easy. It caught up in the day-to-day action or even the intraday action and the news and the headlines and then get lost and then not look at the whole forest. You know, you're looking at the leaves and the trees or the trees, but you miss the whole forest. So I always look to zoom out at the end of the week and do a lot of my heavy lifting as far as the research is concerned because it gives me the ability to zoom out and look at the forest. Hey, we're in a bull market, so on and so forth. So I'll get to all of that. But first, I want to read Gary's notes. Health care stocks are really coming on strong. Big banks continue to act just fine.

A few important technology names recently got hit today, or just recently in last few days as well. Palantir, Roblox, and a few other ones. No, there's some concerns or worries about security, but nothing major for the NASDAQ just yet. Low beta screen, the low beta stocks. Remember, there's high betas and low beta. Low beta stocks.

Gary's screen was very green. Now we'll see what shows up over the weekend, Gary says. And then Bitcoin came roaring back and right back to a new high. And it's about to break out from another base. So those are some notes from Gary. I want to make sure I convey those to you again as the messenger. I want to do my job and convey what Gary wants to say to you right at the top of the show. All right, the rest now are going to be my thoughts and what I have to share.

So here we go. the market is very strong folks in the short term we're getting a little bit on the extended side and what that means it's not the end of the world but what it means is that we're due for a pullback that's really what it means short term now doesn't mean we have to pull back it just means odds are we're getting closer to the market pulling back than further away from it so that's that's one you know keep that in mind Maybe, again, there's a possibility that the NASDAQ is going to lead on the way down, and we can have a little pullback here.

And if we pull back, or when we pull back, rather, if it's not now, it could be soon, watch that 21-day moving average in the NASDAQ and watch the 50-day moving average. Those two areas are important support for the NASDAQ, the S&P, the other indices as well. Also, the small cap Russell 2000 is flirting now with new all-time high-deme, territory, which is encouraging. The midcaps, MDY, haven't broken out yet, but still, strong. And the Dow broke out hit a new high, and the SNPs had a new high as well. Again, short term, think of it the best way is a traffic light. You get a green light, yellow, right? After every green light, what happens? You get a yellow. After every yellow, you get red, and then it goes back to green

again. So the red light is when markets sell off. Green light, when markets go up. Well, we're up now six straight months in a row. April, May, June, this is the NASDAQ 100, the QQ, if you're following it home. You can just look at a monthly chart of the QQQ. And you'll see, April, May, right? Up, up, June, July, August, September, and now October. That's a big run. And on a percent basis, that's a big move from the April low. So we're entering the fourth quarter. what happens at the beginning of every quarter, right around the corner, earnings season. But the government shut down, so it doesn't impact corporate earnings. But the economic data that we get from the government, today we're supposed to get the jobs report,

is not coming out. It's delayed until the government reopens. Now, that reopening could happen at any time. It's just a funding situation where both sides of the aisle, you know, put their foot down. They're like, oh, we want this. Oh, no, we don't want that. Let's cut this, let's cut that. Okay, right out of money, can't pay.

And then boom, boom. We've seen this story before lots of times. And every time, government reopens, every time stocks rally, go back up again, over a long enough period of time. So this time around, market didn't even sell off. Yeah, the market's like, we've seen this movie before. You know, spoke about that yesterday. I want to cover it again now.

So the news is important. Oh my God, the government shut down. How's the market not going down big? Right? Well, because we've seen this before. There's a thing going around saying up tover instead of October. The market's up this month. So it's up to it.

Excuse me, October. We'll see what happens three days into the month. Easily this market could end down for the month. We're very extended and we're due to pull back. but if we don't pull back and instead we continue to rally or we have a small pull back into the 21 day or a small pull back into the 50 day and then we keep going we're really set up for a very strong fourth quarter and beyond when you get into these phases folks we get these big breakouts from a long sideways consolidation you know back earlier this year we've retested the old chart highs from 2021 and 22 depending on

the index you look at and we've found support there so the classic case of resistance because coming support and then boom the market took off that paves away for higher prices and then what happens we broke out a few months ago in the major indices the s&P you can look at the SPY the QQQ and then boom now we're at all-time highs government shuts down markets that doesn't care markets at all-time highs when the market's able to shrug off I mean literally just dismiss just about all the negative news that's thrown at it that tells us that tells us a lot. Why? Because it's not the news that matters, as Gary's told you many times. It's the reaction to the news. And for me, that's front and center. It's I want to understand my behavior

and the market's behavior with certain events occurring, whether that's the market going up, the market's going down, you know, this, that, and the other thing, whatever the case may be. It's really important for me to understand, okay, again, those understand. Again, those understand, understand the probabilities. In the short term, we're extended. In the short term, we can easily pull back. In the short term, you know, the NASDAQ 100 is the leading index. Well, okay, what does that mean for me? I'm going to watch it because if that's going to start pulling back, what's going to happen to the rest of the market? There's a high likelihood the rest of the market pulls back. It doesn't have to, but we've seen this over and over and over again.

Watch them follow the leaders, right? Watch those leading stocks because they're clues. You know, Reddit started, RDDT is a ticker, if you're following at home, talking about some of these stocks reversing or just rolling over. When leaders start rolling over, I'm paying attention. You know, Reddit, RDDT, had a big base breakout. 230 was the old high from February. You broke out after earnings. Earnings came out in August, rallied, rallyed, hit 282.

And then a few days ago, about a week and a half ago or so, I guess let's go two weeks ago, mid-Septemberish to late September. it starts selling off breaks a 21 day on the 23rd of November of September excuse me and then it breaks a 50 day moving average two days ago on the first of October and now it's quote unquote living below the 50 well and it broke below that 230 level it's at two oh it's you know just above 200 right now so it's that big base breakout got negated oh okay not the end of the world it could still find support and rally here below the 50 it's now below it so we want to see you. get back above it.

But that's once, that was the first stock which caught my attention. I'm like, oh, we might have a little pullback unfolding. It doesn't have to happen, but there's a chance that we're going to get a little pullback. All right. Then what happens a few days later, Palantir, PLTR. That's today. Boom. Down.

Pretty strong sell off. And it kind of broke out yesterday too a little bit. PLTR. All right. Pulling into the 21 day, pulling into that 50 day. Not the end of the end of the. the world just yet. But again, it's about stacking the odds of success in our favor and understanding, oh, okay, things don't just go straight out. Meta, META, another leading stock was at 479 in April,

rallied all the way up to 796 in August, has been moving sideways since, and now it broke the 50-day moving average right when red it broke it, and now it's below the 50. Again, just stacking, putting these pieces together, connecting dots. Up next, we've got a lot more to cover. 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 first. 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 888-4-2-4-2-5-9. Investment Advisory Services offered through Call Bomb Capital Management Guys, it's no use putting it off. The best time for an underwear

refresh is now. Tommy John Underwear is designed for a perfect fit that stays put all day. Their zero chafe thanks to four times more stretch than competing brands and their innovative

horizontal quick draw fly is a game changer. With over 30 million pairs sold, there are thousands of men out there more comfortable than you. Don't settle for less. Go to Tommyjohn.com today for 25% off your first order with code comfort. That's Tommyjohn.com code comfort. Tommy John.

Comfort perfected. This message is brought to you by the Capital One Venture X card. Venture X offers the premium benefits you expect, like a $300 annual Capital One travel credit for less than you expect. Elevate your earn with unlimited double miles on every purchase, bringing you one step closer to your next dream destination. Plus, enjoy access to over 1,000 airport lounges worldwide. The Capital One Venture X card. What's in your wallet? Terms apply. Lounge access is subject to change.

See Capital One.com for details. This episode is brought to you by Sprecker. The platform responsible for a rapidly spreading condition known as podcast brain. Symptoms include buying microphones you don't need, explaining RSS feeds to confused relatives, and saying things like, sorry, I can't talk right now, I'm editing audio. If this sounds familiar, you're probably already a podcaster. The good news is Spreaker makes the whole process simple. You record your show, upload it once, and Spreaker distributes it everywhere people listen.

Apple Podcasts, Spotify, and about a dozen apps your cousin swears are the next big thing. Even better, Spreaker helps you monetize your show with ads, meaning your podcast might someday pay for, well, more microphones. Start your show today at spreeker.com. Sprinker, because if you're going to talk to yourself for an hour, you might as well publish it. 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 from a steady part of the show, you can go to GaryK.com. rewind fast forward listen live or archive on demand anytime you want all right so a few thoughts here that I want to keep in mind and share with you so we have connecting dots you look at reddit we spoke about meta we spoke about palenteer roblocks rblx i'm just showing you leading stocks one by one

that kind of began getting in trouble that began rolling over rblx roblocks broke out of a nice cup and handle pattern with was light volume About average volume, it wasn't heavy volume on the 29th of September, just a few days ago. The next day on the 30th rolls over and the gates the breakout. And then the first falls to the 21 day, sits on the 21 day. The second, which was yesterday, broke below the 21 day, closed below it. Today gaps down below the 50. Just another one.

Again, not the end of the world just yet. When you put that superimpose it, there's a big word, you superimpose it on top of the NASDAQ being extended. Yeah, we can easily pull back. here and it'd be perfectly fine and normal, right? It's not the end of the world. So not all, just because a stock pulls back means, oh my gosh, it's over. No, it's perfectly normal to see stocks pull back and it's perfectly normal to see stocks rally and then, you know, so on and so forth. But when you start seeing lots of these and especially big ones that are important, that are leaders, do that. With the market extended, increases the probability of the market

pulling back. C-O-U-R, Coursera, another one, had a huge gap up in July on earnings, moved sideways since, broke the 52 days ago on the first, and now you're testing support. And just another one that just not good action, right? Roblox spoke about that. A few other ones, what else can I share with you? Las Vegas Sands, LVS, was at 30 bucks in April. Now it jumped up to 58, so pretty much doubled. And then today breaks a 50 on heavy volume.

not a good sign not the end of the world but not a good sign Jable JBL another one breaks the 50 today on just about on volume I win

didn't break the 50 but broke the 21 day not the end of the world wind still looks fine WynNN let's see what else I want to show you PGY is another one

that went from 44 to 29 broke the 50 let's see here what else that's really it as far as the big ones there's a few other ones that if you want to go through and look at the individual ones, let's look at Amazon AMZN,

for example, some of these big tech stocks. It's below the 50 also. It broke the 50 on the 23rd. So again, I'm not sitting here saying, oh, we've got to go lower. No, not by any way, shape, or form. All I'm just saying is near term, I wouldn't be surprised at all to see a pullback. And there'd be nothing wrong, by the way, with a pullback for the NASDAQ into the 21 day or into the 50 day.

So we're in a situation where the environment is strong, but we're due for a pullback. Really, it's just that simple. And when you look at these leaders or these big tech stocks or these, you know, look for areas, for groups. Look for clues, clues, right? Look for clues. What's happening? And then you put them together. Oh, okay.

With the market being said, okay, I wouldn't be surprised at all to see a deeper pullback or at least a 21-day check. or the 50-day check. And that's it. Nothing more, nothing less. I'm not saying the crash. None of that stuff. No, just, hey, we're due for a pullback. So if and when that pullback happens,

we're not caught off guard, we're not surprised, so on and so forth. Now, on the other side, we've got lots of really good-looking setups. We've got lots of really good-looking stocks. We've got lots of breakouts. Apple, AAPL. It's sitting right below resistance.

260 was a chart high from December of last year. It's been moving sideways, building almost a 10-11-month base, and it's right near 260. A breakout above that would be really bullish. And Apple is a big component of the major indices, right? Okay, great. Let's see what other setups can I give you here that jump out of me and look good? Well, I can just go through the list here. Let me go through it.

All right. And breakouts too, by the way. Shopify, S-H-O-P. this is a leading stock. It's a tech stock. They make online stores. Guess what it did today? Broke out on volume.

Had a big gap up when it reported earnings back in August. Move sideways since. Very nice breakout today's SHOP. And again, these are not by recommendation. I'm just showing you. I'm showing you what I'm seeing, right? And helping you understand the logic behind the thought process. So you can see this and you can connect those dots and hopefully to empower you

to make, you know, great decisions. Shopify. Great, that breaks out today. All right. What else is happening? What else is breaking out? Gary spoke about those healthcare stocks coming up strong. Let's look at, you know, medical product stocks.

MDT, Medtronic, another breakout today. Medtronic. Okay. We had Trump with Pfizer, their deal, PFE was a ticker there. A few days ago, what happens? Pfizer explodes higher on volume, average volume, Pfizer's about 49 million shares. On the 30th, it shoots up on 165 million shares I'm rounding.

That's a lot. And again, it's not Mary and Uncle Bob doing that buying. That's a big institution's. And it continues to rally. Extended in the short term, Pfizer, but still, big move nonetheless, right? A few more breakout and setups. I'll just go through them for you. Let's see what other areas.

Plug, PLUG. This is a fuel cell stock, right? Okay, big huge move today. up 33% or 35% whatever it is, up over 30%. Big, big move. We're up over 20, double digits. Let's put it that way. I don't have the exact number in front of me, but it's up big today, right?

On volume. Average volume is 74 million. What happens here? You've got a few hundred million chairs, right? That's a lot over 400 million chairs. That's a lot. Big institutions buy. Right?

F-C-E-L, another fuel cell. company, the name here is fuel, sale energy, FCEL, big move today on volume. And it's been going up for the last few weeks. And again, I'm not going out there blindly buying these. I just want to put my finger on the pulse. You might ask, Adam, how do you do this? How do you know? How do you find these things?

Look for stocks that are up on volume. And you can get these from really for free on lots of services, a lot of charting services, where you get these stocks that are up on volume and you go through them and train your eye. like Gary says, they become over time, like a photo album. Back in the day, we used to have physical photo albums. You go through them, they become familiar faces. And Gary saw right about that. That's what happened with these chart patterns.

Oh, over and over and over again. You know, we find themes. If I find four or five stocks breaking out or moving up on volume that haven't broken out, but they're just up a lot, right? That's telling me that big institutions are buying that group. Lithium, for example, LIT is an ETF that tracks lithium stocks. This has had a huge move over the last few months, really, since July or August. Now it's been just going straight up.

Super extended. I wouldn't buy it up here, but a group I'm watching, right? The GDX, gold stocks, and the ETF attracts gold stocks and the GLD gold, both are a huge over the last few months. How did I find that setting up? The gold stocks broke out before gold did. And then all of a sudden, a few weeks later, gold breaks out. Because again, we're looking for clues. It's like a detective.

You're connecting dots, patterns. It's all about pattern recognition, folks. Up next, I've got a lot more to cover. I'll talk stocks and sectors and all that fun stuff. I'm Adam Sarhan. This is the one and only investors edge. I want to thank you very much for being. Guys, it's no use putting it off.

The best time for an underwear refresh is now. Tommy John underwear is designed for a perfect fit that stays put all day. Their zero-chafe thanks to four times more stretch than competing brands, and their innovative horizontal quick-draw fly is a game-changer. With over 30 million pairs sold, there are thousands of men out there more comfortable than you. Don't settle for less. Go to Tommyjohn.com today for 25% off your first order with code comfort. That's Tommyjohn.com code comfort. Tommy John. Comfort perfected. This message is brought to you by the Capital One Venture X card. Venture X offers the premium benefits you expect, like a $300 annual Capital One travel credit for less than

you expect. Elevate your earn with unlimited double miles on every purchase, bringing you one step closer to your next dream destination. Plus, enjoy access to over 1,000 airport lounges worldwide. The Capital One Venture X card. What's in your wallet? Terms apply. Lounge access is subject to change. See Capital1.com for details. This episode is brought to you by Spreaker. The platform responsible for a rapidly spreading condition known as podcast brain. Symptoms include buying microphones you don't need, explaining RSS feeds to confused relatives, and saying things like, sorry, I can't talk right now, I'm editing audio. If this sounds familiar, you're probably already a podcaster. The good news is Spreaker makes the whole process simple. You record your show, upload it once, and Spreaker distributes it

everywhere people listen, Apple Podcasts, Spotify, and about a dozen apps your cousin swears are the next big thing. Even better, Spreaker helps you monetize your show with ads, meaning your podcast might someday pay for, well, more microphones. Start your show today at spreeker.com. Spreaker, because if you're going to talk to yourself for an hour, you might as well publish it. We're listening to America is talking. Investors Edge. He's got to be pleased with that. The crowd is just on his feet here. He's a Cinderella boy. With Gary Colbomb. It comes highly recommended.

You're going to feel better if you talk to it. And welcome once again to Investor's Edge. In case you're just joining us or missed any part of the show, you can go to GaryK.com, rewind, fast forward, listen at your convenience anytime you want, 24-7. All right, so we spoke about a lot so far. We've got the major indices. We've got the government shutdown. We've got the reaction to the news, right?

Don't get caught up in the news because it's always, at some extent, the markets climb a wall of worry, doom and gloom. Oh, my God, this time is different. No, it's not. it's the reaction to the news. Really, really important distinction there. If you just follow the news over the years, you know, I don't remember a time where the news is like, everything's hunky-dory. In fact, when they do get there, it's almost time to sell.

So it's the market. Pay attention to price. Why? Because that's what shows up on our statement. That's what determines whether or not we make money or not or lose money. Really, it's just that simple. It's price. Everything else, to me, is second.

How do you know if the market's healthy or not? Let's look for breakouts. How do you find those breakouts? You can go to stocks up on volume, or you can look through, you can scan stocks, or you can do anything you want to find them. The idea is you doing the work, right? However you want to go about doing that work, it's great. And just because you have lots of breakouts doesn't mean that the market has to go up.

It's just indicative of like, oh, okay, we have lots of setups. Oh, that's a quote unquote positive thing if there's lots of stocks breaking out. Because back in March, when the market was getting crushed, there were not a lot of stocks breaking out. Some days there were no stocks at all breaking out. Some days there were maybe one or two. When the market's really strong, you get 30, 40, 50 stocks. Most of them are subpar of breakouts.

I'm not buying 30 stocks. No, just need one. I had a conversation with a longtime friend and client of mine. been with me since 2004. So you can do the math there. It's been a very good run. And he called me up today to thank me because he was finally able. I mean, over the years we've worked in different capacities.

You know, first started off, I was managing money for him. Then he took it over and I did some coaching with him and, you know, blah, blah, blah. We've had a long, I mean, all the decades now. But he's at the point now where he's able to understand. how this business works from a mental standpoint, the psychological analysis, right? Understands, he called me to thank me. Hey, Adam, I want to thank you for keeping me straight because lots of times, A, you want to give up. It gets difficult, just like anything that's worth doing. Usually it's not easy. If it was really easy, everybody would do it. There's no alpha.

There's no ability to outperform. It's just, oh, okay, everyone's doing it. I'm just doing it. Okay, great. To be excellent at something to master. something, it requires going above and beyond the extra mile. In anything, in the market, in basketball, baseball, football, soccer, hockey, it doesn't matter. It's the tenacity, the drive, the dedication to win. I was speaking at a conference just recently, and there were people from all over the world there. And one of the guys in the audience was from overseas, he didn't speak English that well. I go, listen, he asked me the question.

I don't understand what he said. so you get to say it again. And I said to him, I said, listen, we were all speaking the same language. You know, the language I speak is winning. I just want to win. Do the right thing. I want to help people, acts of service, you know, be in service and help others. I told Ken today, the guy who called me, I said, you made my day. You made my weekend. Absolutely made my weekend. Why? Because it was really nice. I'm going to do that. And this is not a business when people call up and say, thank you often. it's a nice thing to do. Do it often.

The more you say thank you, the better. Please and thank you, right? Even for grownups and adults, it goes a long way. So him thanking me. I said, yeah, it's my pleasure. Okay, great, but you're doing the work. I thanked him in return. And it was a very good conversation.

And a lot of the patterns that were holding him back, I saw it clearly because I'm not in that situation. Just like a coach. Every great athlete has a coach that I know of. Why? Because there's something called a personal blind spot bias. can't see yourself objectively, but if somebody outside can see you, you can coach you, you can get a much better result, much faster.

Right? So I always recommend people to pair up with someone that has like-minded and whatever the endeavor is that they're doing and they do the best to excel and raise your standards, right? All right, if something's not working, don't keep doing it, expecting different results. It's Einstein's definition of insanity. Adjust. Instead of keep going right, hey, let me go up, let me go down, let me go left, let me go up to the right.

adjust until you find something that works for you, especially in the market. And lots of times my experience has taught me it's not the technique that matters in the market. It's the application of the technique. Meaning in my book, psychological analysis, I say there's an infinite number of ways to make money in this business. Your job is to find one that works for you. Meaning if someone's a value investor like Warren Buffett, that might work. really well for him. It might not work well for me, but it works great for him. Great. I like buying breakouts. That works for me. Okay, great. Both can work. It's not like one's right, one's, you know,

right and the other one's wrong or vice versa. No, both can work. It's a matter of finding what works for you and then staying disciplined and focusing on it. In Wall Street Parlin, something called style drift where someone switches their style they could be a fundamental trader one day a technical trader the next day a swing trader the third day a growth trader a garp trader growth at a reasonable price the next day or whatever it is right week after week month after month a year after year they keep just switching switching switching chasing that next you know shiny object and instead they never really get ahead they're just it's the temptation of oh that could work okay great let me try it and let me try it and it doesn't work gets hard instead of pushing through

that hardness they just stop and give up and switch to something else i've done that many times over many things but how do you master something so you find something that works for you and then you push through and you find those obstacles and you all figure out a way to overcome really that's it again in just about any endeavor i have young kids i teach teach him how to ride a bike it's the same thing. You don't just get on a bike and know how to ride it. But if you stay calm, you stay disciplined, and you try it, day and day out, day and day out, it's going to just click one day. It might take you a month or two weeks or a year. It doesn't matter how long it takes, as long as you're safe and you're making progress. That's the key. It's progress. Great. Eventually, you'll get it. Same thing

with holding their noses and going under the water. It's the same thing over and over and over again. So with investing and training, you can be your biggest asset or the other way around too. But to be the biggest asset, you got to pause for a second, pull back, remove yourself in the equation, realize that we're human, right? We have biases. We're going to make decisions that are sometimes emotional, even though we think we're making rational ones because we're emotionally attached to our money. So therefore, just like a doctor who can't perform surgery on his immediate family or her immediate family, why? because there's an emotion there. It's going to cloud their judgment. You can make investment decisions with your own money. That's fine. There's no rule that says you can't, but just understand there's a layer of emotion that you've got to peel through and do that work and figure out how to make objective decisions. I like to go through breakouts. I like to go through setups. I like to look for high-ranked stocks. I like to look at the major indices. I like to look at the overall landscape and then do a top-down approach and say, where are the leading areas? What are the leading stocks in those areas? Which stocks are breaking out?

I'm not going to buy a stock just because it broke out. No, most breakouts don't work. That's okay. As long as the risk is small when you're wrong. And when you're right, you let the winner run. It's a winning formula over time. Risk versus reward. Remember, it's super important to understand what's actually happening.

You're risking money for a potential to make more. That's it. But when you're wrong, if you let that loss get too big, it can really cause you to move backwards further away from your goal of making money. So, okay, that works for me. So I'm going to find those breakouts. I'm going to find those leading stocks. I'm going to find those setups.

I'm going to look for stocks that are trading near 52-week highs. Above their 50-day moving averages. I'm going to look for stocks near the 21-day moving averages. I'm looking for volume patterns. Just because the stock breaks out, I'm not just blindly buy it. I want to see other stocks in the group confirming. Does the company have earnings? Is the company growing its earnings?

It's a company of revenues, a company growing its revenue. Do I understand this company's story? Great. Does the market agree with me? Whatever my thesis is, good or bad? So, on and so forth, right? So that all becomes really, really powerful because those are tools that I use say, oh, okay, money's flowing into this group. All right.

Steel. GSM is a ticker. Broke out today on volume. All right. Let me look at other steel stocks. MT, gapped up two days ago, little extended right now. The SLX, which is a steel ETF, kind of breaking out here. All right, let me look at some steel stocks, so on and so forth.

I found out from finding one breakout and looking at other stocks in the group. Again, clues, connecting dots. Over time, it stacks the odds of success in our favor. Up, up next, I've got a lot more to cover. There's our time. I'm Adam Sarhan. This is the one and only Investor's Edge. It's no use putting it off.

The best time for an underwear refresh is now. Tommy John underwear is designed for a perfect fit that stays put all day. They're zero-chafe thanks to four times more stretch than competing brands. And their innovative horizontal quick-draw fly is a game changer. With over 30 million pairs sold, there are thousands of men out there more comfortable than you. Don't settle for less. Go to Tommyjohn.com today for 25% off your first order with Code Comfort. That's Tommyjohn.com, code comfort.

Tommy John. comfort perfected. This message is brought to you by the Capital One Venture X card. Venture X offers the premium benefits you expect, like a $300 annual Capital One travel credit for less than you expect. Elevate your earn with unlimited double miles on every purchase, bringing you one step closer to your next dream destination. Plus, enjoy access to over 1,000 airport lounges worldwide.

The Capital One Venture X card. What's in your wallet? Terms apply. Lounge access is subject to change. See Capital One.com for details. This episode is brought to you by Spreaker, the platform responsible for a rapidly spreading condition known as podcast brain. Symptoms include buying microphones you don't need, explaining RSS feeds to confused relatives, and saying things like, sorry, I can't talk right now, I'm editing audio.

If this sounds familiar, you're probably already a podcaster. The good news is Spreaker makes the whole process simple. You record your show, upload it once, and Spreaker distributes it everywhere people listen, Apple Podcasts, Spotify, and about a dozen apps your cousin swears are the next big thing. Even better, Spreaker helps you monetize your show with ads, meaning your podcast might someday pay for, well, more microphones. Start your show today at spreeker.com. Spreaker, because if you're going to talk to yourself for an hour, you might as well publish it.

You're listening to. What are we waiting for? Well, what are you waiting for? One, two, ready, go. Action! Investors Edge with Gary Culpa. And welcome once again to Investors Edge. I'm Adam Sarhan.

In case you're just joining us from this any part of the show, you can go to GaryK.com, rewind, fast forward, listen at your convenience anytime you want. All right. So a few thoughts here as we keep going here. There's a lot to cover, but the week in review, it's like, okay, stepping back, markets trading at near all-time highs.

We're strong. had a big run over the last six months. It's rare to see the market go up seven months in a row. It can happen. Rare. So, okay, I'm expecting a pullback at some point. We're starting to see leading stocks, like I mentioned earlier, begin to roll over, meta, Palantir, Roblox. Some of the other ones I mentioned, Amazon.

I can go through more and more. But again, it's just making the point, right? So, all right, noted, right? Doesn't mean after 100% sell and get out. None of that stuff. Okay. I want to pay attention to what's actually happening here. And if it's time for technology stocks to pull back a little bit, sure, great.

Anything else going to pick up and lead? Let me find those breakouts. Let me find those movers up on volume. That's, again, putting pieces together. So a few thoughts here. Again, Gary mentioned the low beta stocks are doing well. All right? You can easily see the passing of the guard from one group, like the semiconductor stocks, the SMH, has been really strong.

It's really extended, likely to pull back at some point. Okay, great. As that pulls back, you can see it passed a baton, so to speak, to another group, like steel stocks or chemicals or these fuel cell stocks or the healthcare stocks that are acting well, biotech stocks. A lot of these areas were dormant over the last few months as the money floated to AI and tech stocks. Well, if those areas pull back a little bit, what can happen? You can easily pass that baton over to the underperforming areas like that. And what happens? that'd be perfectly normal.

The market can really just stay as is or continue to move higher while that passing the baton happens. Why? Because that's what happens in the market. You have lots of sectors. And as long as one sector pauses and a few other sectors show up and start leading, the market, the major indices can either move sideways, can move a little bit higher here. And you don't really see a big pullback in the major indices. I call this. it's not an official term. It's my term called the Great Mini Rotation,

where the Great Rotation was a term used decades ago, where money would flow out of stocks and to bonds, vice versa. So in 2004, five, and six, I started noticing this phenomenon happening over and over again, happened again after 2008. It was happening and saw it at 9, 10, 11, 12, on and off, where it's happening again now. The Great Mini Rotation is what I call it. where under the surface, you see one sector lead like the semiconductors. It has to pause at some point. All sectors pause.

And then it passes the baton to another sector. That sector leads. And then that sector has a bigger run like healthcare stocks. Okay, great. That pauses. Over the last few months, Bitcoin stocks or crypto stocks or crypto itself was pausing, was moving sideways. Okay. Then that took off.

Now it's breaking out. Okay, great. So as that, you know, gold had a huge move in the beginning of the year. and then it moved sideways for four or five months. And then it just broke out in September. While that was moving sideways and pausing, the semiconductors were rallying. And then so on.

Now gold's taking off. And then so on and so forth. So you can see gold and semiconductor stocks pull back and then underperforming areas like healthcare or biotech or steel or any of these areas that just haven't participated, take off and go. That's what I call the great mini rotation. It doesn't have to happen.

It's not a guaranteed lock. It doesn't mean that the market's going to shoot higher, so on and so forth, all it means is that, oh, that's a very big possibility that that could happen. All it means is, oh, I want to find the areas that are leading. I'm agnostic. It doesn't matter what part of the market it is or where it is or any of that type of stuff. I just want to find leadership. What areas are leading the market?

And I want to be there as they're beginning to start that rally, beginning to emerge. Why? Because for me, that's very, very positive. If that becomes a new sustained uptrend. Nobody knows if that's going to be a new area that leads or how long it leads for. But it has to break out first, right? It has to have that first step. Oh, okay, let's see if that works. And if the breakout doesn't work, see you later.

Small loss. And if it works, great. You get a bigger win. It's a rule of nature. I spoke about this before. You have apple trees, right? You have a thousand seeds come out of that apple tree. Let's say 9009 fail. One becomes a new tree. And then another thousand. 999 fail. One becomes a new tree. So on and so forth. Nature flourishes with that model. Same thing here. Most things don't work and that's okay. Why? Because you're in a situation where if you stop and pause and you understand how things work, Oh, okay. I don't have to have every single trade work, right? It's like the high school boy who goes, wants to kiss all the girls and the proverbial dance.

It's not going to happen. But you find one good stock. You find one girl. Boom, you get married. You're very happy. Extremely happy. You live a great life. In fact, I would argue a better life, right?

Okay, great. No judgment. Do whatever we want. But for me, that's worse. I'm very satisfied. Actually, beyond satisfied. I'm elated, right? All right.

Same thing with stocks. One stock can make your year. Two stocks, two good trends. You don't need to catch every single leading stock. Early on, when I understand that phenomenon in the market or in life, I used to get frustrated. But I can't do the stock broke out without me. I saw it. I was watching it. And then I would beat myself up. There's no ROI in beating myself up. So I stopped doing it. Real simple. Stopped. No thanks. In fact, encouraging. Switch it. From a negative to a positive. Remember, success is a decision. Happiness is a decision. The best is yet to come. It's just the reality of life we live in. Right. So adjusting that mindset is critical. Really, really critical. Because yes, I'm going to miss stocks and that's okay. I'm not going to catch every single breakout. That's okay. I'm not going to catch every single match. That's okay. I don't need to. one or three or four good trades over the course of a year could manage well, can lead to phenomenal results, especially when that's compounded over time. And all the small trades that didn't work, as long as those losses are small, all right, no problem.

No harm, no foul, because those big winners clean up the rest and then some. Law of nature. and it applies to our business investing and applies lots of other areas too just about any performance-based business you're in baseball for example you swing the bat you strike out you get one out you hit you possibly can have four runs

if you get a grand slam asymmetric risk to return right just how it works all right everybody I believe that's all the time we have for today as always want to thank you very very much for being here I'm Adam Sarihan this is is the one and only Investor's Edge.

This has been Investors Edge with Gary Cult Bomb on BizTalk. To listen to past episodes or to get in contact with Gary, go to GaryK.com. That's GaryK.com. Guys, it's no use putting it off.

The best time for an underwear refresh is now. Tommy John underwear is designed for a perfect fit that stays put all day. Their zero chafe thanks to four times more stretch than competing brands and their innovative horizontal quick draw fly is a game changer. With over 30 million pairs sold,

there are thousands of men out there more comfortable than you. Don't settle for less. Go to Tommyjohn.com today for 25% off your first order with Code Comfort. That's Tommyjohn.com code comfort. Tommy John. Comfort perfected. This message is brought to you by the Capital One Venture X card. Venture X offers the premium benefits you expect, like a $300 annual Capital One travel credit for less than you expect.

Elevate your earn with unlimited double miles on every purchase, bringing you one step closer to your next dream destination. Plus, enjoy access to over 1,000 airport lounges worldwide. The Capital One Venture X card. What's in your wallet? Terms apply. Lounge access is subject to change. See Capital One.com for details.