November 26, 2025 • 40 mins
https://garykaltbaum.com/
The opinions you hear on BizTalkRadio, BizTV, or BizTalkPodcasts are those of the hosts, callers, and guests and do not necessarily reflect those of BizTalkRadio, BizTV, or BizTalkPodcasts, its management or advertisers. The information on BizTalkRadio does not constitute a recommendation, offer, or solicitation to buy or sell any product or securities. Please consult a professional before investing.
The opinions you hear on BizTalkRadio, BizTV, or BizTalkPodcasts are those of the hosts, callers, and guests and do not necessarily reflect those of BizTalkRadio, BizTV, or BizTalkPodcasts, its management or advertisers. The information on BizTalkRadio does not constitute a recommendation, offer, or solicitation to buy or sell any product or securities. Please consult a professional before investing.
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:01):
Investor's Edge with Gary Cultbomb, straight talk about you and
your money now from the Viz Talk studios. Here is
Gary Cultbomb.
Speaker 2 (00:11):
And welcome once again to Investor's Edge. I'm Adam Sarhan
in for Gary Kay who's out today. Today is Wednesday,
November twenty six, twenty twenty five. Want to wish everybody
a very happy Thanksgiving also holiday season. We have a
great show for you tonight. As always, we've got a
lot to cover and jump right in and admitted here,
but a little housekeeping just as a quick reminder, if
(00:33):
you don't get this show in your city, you can
go to gary k dot com. You can listen live
or archive. We are live Monday through Friday six to
seven pm Eastern. Also at gary k dot com, you
can follow Gary on Twitter or x formerly known as Twitter.
Just press the button. You can subscribe Gary's morning notes
and directly your inbox for free. You can email Gary
directly ask about his money management services, read his commentary,
(00:56):
and if you want more. Gary's premium service is conviction
leaders dot com. Once again, you could take a free
trial over there at conviction leaders dot com. He updates
members several times a day with what he sees with
annotated charts. He does daily webcasts, in depth webcasts, gives
pivot points by points, you know, actionable ideas, and sell points.
(01:18):
All this fun stuff, A lot of that's available, well,
all that's available at conviction leaders dot com. All right, everybody,
this is a I guess a holiday shortened holiday week.
A lot's happening, and I'm going to read notes from
Gary first and then I'll share everything else second, because
I want to make sure you know, I'm just a messenger,
like they say, I want to make sure that I
can get my notes across and not miss anything. So
(01:42):
with Gary, the big thing here is last week the
market was selling off hard. And it's interesting because markets
reminds me of like a green light red light scenario
where after every green light, what happens, you get a
yellow light and then you get a red light. After
every red light you get a green light, and vice
versus green, red, red, green. Just to keep it simple,
(02:03):
markets are the same way. Markets go up. That's a
green light, all right. Pause, yellow light's a pullback, which
is what just happened, or going down. A downtrend would
be a red light, you know, red light, yellow light
doesn't matter to me. It's down, either up or down
right or sideways. That's all the market can do. So
market goes up as a green light goes down. Sideways
are down. That's a red light. And then what happens
after every pullback you get another green light, after every
(02:25):
red light you get a green light, and then goes
back because I want and so forth. So we had
a very steep pullback in the first few weeks of November.
This week shortened holiday week, we had a very very
impressive rally, or we're having not had We're having a
very impressive rally as the market bounces from over sold levels.
(02:46):
So few things here's from Gary. Gary has been saying
basically an outstanding comeback. When I go back and backdate
my charts to the close of last Thursday, I would
have bet anybody we were heading lower, and instead we
walk into a gap up on front and nothing but upside.
Since Gary says he thinks the combination that the thought
of no FED rate cut to a guarantee of a
(03:08):
FED rate cut in December is doing the trick and
then leaking that. Kevin Hassett, being the new fedhead, put
some whipped cream on top of the ice cream, because
we will. He will be an arm of Donald Trump,
who wants one percent FED funds rate, which is much
lower than where it is now. Basically wants to fed
to cut rates. Keeping my markets just backed into the range,
(03:29):
the prior trading range it was in before before the
big drop. But the broad market is really starting to
pick up. And he mentioned a lot of this earlier
in the week on Friday as well, So those are
notes from Gary again. Coming into this week, market was
over sold, it was due to bounce. And what happened,
(03:49):
instead of going down even further, we had a massive,
massive rally, and in fact the rally was so big
that on a weekly chart if you look right now
on the QQQ and just type in weekly chart on
any charging platform you want, we pretty much have recovered
all of last week's decline, and earlier today we were
(04:12):
actually above the high of last week. So the entire
sell off from last week has been just last week
has been repaired. Not only that, we're back above the
fifty day moving average, which is super super important, so
big recovery this week. Now, Volume which again price is primary,
(04:32):
volume is secondary, has been below average. It's a shortened
holiday week, any enter, any reason you want. What matters
for me is very simple. It's price first, everything else second.
Why Because what shows up in your statement price. Everything else,
including volume and earnings and schmirtings and fundamentals and technicals
(04:55):
and charts and smarts and everything else, doesn't show up
in the statement. It's price. So that to me is king.
That's primary driver's set, everything else secondary. Not to say
volume isn't important. It is important, but price is more important.
That's all same thing with the earnings and charts and
all that other stuff. Price is primary, everything else is secondary,
in my opinion. So what happens is prices get stretched
(05:18):
both up and down. Why because humans are creatures of
emotional creatures. We make decisions based on emotions. We justify
it later with logic, but we're emotional creatures and that's
just the way the markets works. They get stretched up
and down. So from the reason high in late October
up until you know last week's low, I think the
NASDAC went down about six seven percent, set eight percent,
(05:41):
somewhere in that range, was under ten percent. It was
just a pullback, and that happens multiple times. The S
and P five hundred. Same thing happens multiple times where
you get these pullbacks. The S and P now is
only percent and a half below and all time high.
I mean pretty much the entire pullback over the last
few weeks has been recovered in the S and P.
Then ASDAX only three and a half percent below an
(06:02):
all time high. Not to say this is a strong environment,
not to say, hey, need a pallet the table, Bye
bye bye bye bye. No, no, no, no, no, it's
just this is I have to respect the strength. Like
Gary said last Thursday, everything under the sun said, hey,
we're probably going way lower. Guess what. Instead, we're back
above the fifty, back above the twenty one day moving average,
(06:24):
and within a few percentage points one or two good updates,
and we're at all time highs super strong. Remember, folks,
it's not the news that matters. It's the reaction to
the news. And when the markets refuse to fall in
a meaningful way, what that tells me is that instead
they're going to go up. Doesn't have to we can
(06:44):
easily roll over tomorrow. Anything can happen. There's news that
in West Virginia national Guard had died in DC shooting,
or two National guards have died in DC shooting, and
news can come out at any point in time that
could be bullish or bearish, but the reaction to the
news folks as well matters. As we head into the
end of the week. On Friday's a half day, Tomorrow's
(07:06):
markets are closed on Thursday. I always like to zoom
out look in a weekly Okay, guess what we were
down three weeks in a row in the Nasdaq, and
we recovered all of last week's low and then some
this week. That could change, but most likely Friday be
a quiet day, a little bit up. I rarely see
huge outlier moves on Black Fridays, I mean the day
after Thanksgiving. It closes at one o'clock Eastern that day.
(07:28):
It could, but it's rare, so most likely this is
an up week in the market for the month, which
is very impressive as well. If you zoom out look
at a monthly chart, we're in the upper half of
the range. That is extremely impressive considering all that happened
in four trading days. Big recovery. And I said that,
I think last time I was on the show just
a few weeks ago. Hey, in October, we opened lower,
(07:50):
closed higher, and I wouldn't be surprised if it happened again.
I didn't think it would happen again either. I agree
with Gary. We look at last Thursday like, Okay, we're
probably going lower here, but the recovery where we are
now the upper half of the range. Even if we
close here for the month as we end, you know
the end of month is right around the corner. It's
an extremely impressive month. The recovery, assuming that we don't
(08:15):
have a huge sell off before the month end. But
if we just close here in the upper half of
the range, or if we close up on the month,
extremely impressive, both in the S and P. In the Nasdaq,
you can go even further. Look out the Dow upper
half of the range. The Russell two thousand, which is
weaker on a relative basis, is actually up on the
month as of right now. Now that could change the
(08:38):
MidCap md Y, the S and P four hundred up
on the month. Extremely impressive. Doesn't mean we have to
head higher. All it means is that we're in a
bull market, and surprises in bull markets typically happen to
the upside, not the downside. That's where my thought process is.
(08:59):
So we have a situation here where Okay, maybe the
baton is being passed off like a relay race from leadership.
AI stocks were leading on the way up. Maybe now
they're going to pause for a little bit we can
see other areas start catching up. Or maybe the AI
stocks had a little pullback or correction and now they're
going to go right back up again. Either way, I'm
(09:20):
open to anything. All I know is that the bears
had every chance in the world to send the market
lower and they didn't. Instead, we rallied, and now we're
on track. Some of these indisses, like the small ones
in the midcaps are already up on the month, which
is extremely impressive. And the big ones the S and P,
n HASDAC and DOW are almost up on the month,
(09:42):
again extremely impressive. So and we're back above the fifty.
And sometimes you just have to zoom out and just
watch these moving averages and say, oh, okay, where are we,
where'd we close? What happened? What matters? You know? Yesterday
we had a little bit of selling into the clothes
was the last few minutes. Same thing today, No big deal,
(10:04):
No big deal. Dows up three hundred and fifteen points.
Let's see here give you some end of day data.
What happened today. Let's go here. It's a nice update.
Todays up Yeah, about three hundred fifteen points close at
forty seven four twenty seven. The S and P's up
forty six points, close at sixty eight twelve, and the
Nasdaq is up one hundred and ninety points thereabouts, close
(10:26):
at twenty three two fourteen. So it's an update that's important.
Keep that in mind as you move forward. It's really
important because it's not the news, it's the reaction to
the news that matters. Up next, We've got a lot
more to cover. I'm Adam Sorrhand.
Speaker 3 (10:44):
This is the one and only investors Edge.
Speaker 4 (11:02):
Hi, I'm Gary Kolbaum, hosted a nationally syndicated radio show,
Investor's 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,
(11:25):
all to assist you in achieving your financial goals. Understanding
not all individuals have the same needs, will 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 complementary portfolio review. The number to
call is eight eight eight four two two five five
(11:47):
five nine. That's eight eight eight four two two five
to five five nine. That's eight eight eight four two
two five to five, five to nine. Investment advisory services
offer through Call Capital Management.
Speaker 5 (12:05):
It's time to switch on the integrator units and to
get the brain cells working.
Speaker 1 (12:09):
You're listening to Okay, it's promise it could be fun.
Speaker 5 (12:14):
Investor's Edge the last bastion of quality programming.
Speaker 1 (12:18):
With Gary called bomb. It doesn't get better than.
Speaker 6 (12:20):
This, and welcome once again to Investor's Edge.
Speaker 2 (12:35):
In case you're just joining us from just any part
of the show, you can go to gary k dot
com rewind, fast forward, listen live, or archive on at
your convenience on any device, all for free on gary
k dot com. All right, so a few things shortened
holiday week. Spoke about the very impressive rally we had
since last Friday, gap up or last Thursday, but last
(12:55):
Friday and what's happening now is the environment remains very
really just remain strong. Let's look under the market's hood.
So I like, you know, we're in a two few
thoughts here. Number one, it's a stock market, but really
it's a market of stocks. What makes the Nasdaq go up?
Where the S and P five hundred go up, the
(13:17):
NASDAK one hundred, the SB five hundred, whatever it is, right,
it's simple, it's the stocks in that index, really really
really simple. So okay, where are we right now? When
you look at the stocks, the market of stocks, if
you see a lot of movers up and a little
bit of movers down, guess what little look under the
market's hood, a little edge, right, the investor's edge. So
(13:42):
I would do this manually. I would scan thousands of stocks,
and I would sit there and say, okay, moving up,
moving down? Which stocks are breaking out? And like Gary
taught me and I learned from Gary, just get a
yellow pad and paper and just write and manually do it.
Next page, movers up, movers down, circle the ones that
we like, breakouts, setups, which ones have strong earnings? Which
(14:05):
you know, do the work. Then I'm like, all right,
we live in twenty twenty five. There's a way to
automate this took me about two years. Were able to
automate it, build the website, share it with other people
to help other people. It's called Breakouts and Setups dot com.
So it's Breakouts and Setups dot com. You can get
access to free three free breakouts every day, breakdown, setups,
(14:27):
everything about the share all for free. You want to
take a free trial, fight by all means, go for it.
But it's free the first three and then the rest
of them to unlock it. There's a paid wall behind it.
So and again it's thirty nine dollars a month, so
it's not like I'm sitting here saying, oh it's a billion.
That's really simple. But there's fees to charge data for
this stuff. That's why there's a fee, right all right,
So it cost me money right to put this up.
(14:48):
So that's why there's a small fee here at thirty
nine dollars. But again you can try it, you don't
like it, cancel, you like it, stay. I love it,
and that's why I built it. So breakouts under the
markets hood. We had fifty two stomps breaking out today,
so fifty two stocks breaking out breakdowns. We had six,
So fifty two breakouts. Six breakdowns right there. That tells
(15:13):
me a lot. Remember I always like to say the
market is speaking, and then ask are you listening? Why
the market's not literally speaking to me verbally? It's nonverbal.
In fact, nonverbal communication, folks, is how most humans communicate,
more than verbal. It's google it. It's crazy when I
(15:35):
learned that stat most communication is nonverbal. Obviously humans speak,
so for the verbal communication as well, but nonverbal communication
is extremely part of how humans communicate. The markets aren't
literally talking to me, but they're nonverbally speaking. And here's
how I listen. One of the ways I listen. Look
at the price action first and foremost. Second, look at volume. Third,
(16:00):
look under the market's hood. Look at the number of breakouts.
Almost fifty two. We had almost sixty. I'm gonna round
up here to sixty. Why for the simple math that
there's six breakdowns almost ten x the number of breakouts
ten times six is sixty. We have fifty two breakouts.
That's almost ten times a number of breakdowns. To me,
(16:20):
that is a bullish day. Bullish day. Movers. We have
movers up and we have movers down. Today we had
three hundred and eighty two stocks moving up. That means
stocks that are over three percent up over three percent,
only sixty eight moving down three hundred and eighty two up,
sixty eight down in the right. And this all updates
(16:44):
in real time, folks. Right when the market opens, I
can see breakouts admitted into it, two minutes into it,
five minutes, in ten minutes, all day and it updates.
So when the market's really weak, if the stock gets
above the breakout point, it's a breakout. If it goes
below the breakout point, it's not a breakout anymore. We
move it over to another list. So we only want
(17:05):
to keep stocks on that are actually above the pivot
point or above the breakout point on that list, like
Apple AAPL. Apple broke out yesterday. It was on the
list almost all day, but it sold off in the close,
closed below the breakout point or the pivot point. This
was Apple yesterday, So we moved it from the breakouts page.
We moved to the blow breakout point page. Why because
(17:27):
by the end of the day didn't it wasn't above
the breakout point. Right, So, all of a sudden, if
you see a strong open and the market sells off
all day. You have a lot of breakouts in the morning,
right around the open, and then the breakouts start moving
off that page to another page below breakout point. Guess
what that's little a subtle sign of strength, little edge
that oh the market might be getting weaker, or the
(17:48):
opposite could be true. You don't have a lot of breakouts,
and then all of a sudden, boom boom, boom boom,
a lot of breakouts start showing up. That tells me
something's happening under the surface. And lots of times, just
yesterday I saw that. I think there was like six hundred,
eight hundred movers. Okay, there's one of two so on
on Monday and Tuesday, two up days in the market,
(18:09):
I believe yesterday. Let me check on to make sure. Yeah, yesterday,
which was Tuesday, we had eight hundred and sixty six
movers up, sixty six movers down. I saw this around noon.
The market was down because a few big cap stocks
were down. Eight hundred and sixty six movers up yesterday,
sixty six movers down. I'm like, there's no way, And
(18:29):
what happened? Market rallied right after I saw it. It happened
and I just got lucky right after I saw that
the rest of the day of the market rally for
the rest of the day, boom boom, boom, boo boom.
It was six hundred and seven hundred and eight hundred
close at eight hundred sixty six movers up again. A
subtle but important sign of how the markets are communicating
in real time. And that was Tuesday. If you go
back and you look at Monday's action on Monday, there
(18:53):
were six hundred and thirty one stocks moving up, one
hundred and two moving down again. It's the market get speaking.
My job is to listen when I look at this
throughout the day, and it's updating in real time. Lots
of times the market's actions masked with a few big
cap stocks like Apple's a big waiting index in the
index you know, you know the big ones an Apple, Google, Microsoft,
(19:16):
so on, and so for alphabet you know it's Google
and Meta instead of Facebook. All these big stocks, Oracle,
if you have the big one, crawl com. They big
weighted stocks, big market cap They mask a lot of
the action under the markets hood. But this shows it
to me in real time, and it updates in real time,
up and down. Now we've got gap up. We've got
(19:36):
seventeen stocks gapping up today, got seven gapping down, all right,
I'm going to go through them, and TNX gap down.
And it was a it was a breakdown to work
day gap down on earnings is z Scaler gap down,
broke both of the two hundred day a MBA, Amberella
gap down today, PD Chinese sorry page your duty down
(19:57):
twenty three percent, and one or two other ones. And
that's it for the gap downs. The ones that gapped
up asml nice gap up today close and lower half
of the range, robin Hood gapping up because bitcoin's recovering,
Tiva Teva, Tiva Pharmaceuticals. We have a lot of healthcare
stocks and biotech stalks breaking out. That's the next thing.
I'll get to Harmony gold hmy little gap up today. Again,
(20:22):
these aren't breakouts per se, they're just gap ups. We
have breakouts on another page, right, Urban Outfitters gapped up
nicely today, so on and so forth, and you can
go on and on and on and on and on,
and then you go to the next page. We have
new highs and new lows. There's fifty two week highs
and all time highs. I check that throughout the day
(20:43):
and they update in real time. Oh, there's all the
time we have for right now. I'll get back to
this in a second. I'm Adam sorry. I want to
thank you very much for being here. This is the
one and only Investor's Edge.
Speaker 1 (21:11):
You are listening to.
Speaker 2 (21:12):
America is talking small Investor's Edge. He's gotta be beat
with the crowd.
Speaker 1 (21:18):
Is just on his feet here, just said. You're on
a boy with Gary called Bob Come highly recommended. You're
gonna feel better if you talk to him.
Speaker 6 (21:34):
And welcome once again to Investor's Edge.
Speaker 2 (21:38):
I'm Adam Sarhan in for Gary Kay. So today is
November twenty six. We want to say Happy Thanksgiving. It's
a shortened holiday week. The market is closed tomorrow and
on Thursday, and it'll be a half day on Friday.
If the market closes today right here, right now, it's
gonna be up nicely on the week, back above the
(21:58):
fifty day, back above the twenty one. Depending on the
index you want to look at on a weekly basis
and daily basis as well. Well, it's up on the week,
it's up on the day as well, but it's up
on the week. Also for the month, the S and
P and NASDAK are about to turn positive. They're in
the upper half of the range. The Russell two thousand
and the MidCap S and P four hundred are already
positive on the month, which is extremely impressive considering last
(22:21):
week the market looked like it was going to keep,
you know, roll over and go way lower. So we're
in a situation now where the environment is strong. Just
to be very clear, and we're going through and talking
about and discussing how I take a look at the
market action under the you know what's happening throughout the day,
take get a little bit of an edge under the
markets hood even at the end of the night, after
(22:41):
the market closes. Go through. It takes two minutes. Click
on breakouts, click on breakdowns, which one one up or down?
Think of it like a game of tug of war.
How many movers up? How many movers down? How we
ended off with fifty two week highs? How many fifty
two weeks high? And by the way, if this doesn't
work for it, you don't have to do it. I'm
just showing what works for me. In case it does
help you and work for you, I want to number
(23:04):
of fifty two week highs throughout the day, and this
updates folks in real time. So I've got one hundred
and forty nine stocks today that are hitting new fifty
two week highs, and I've got fifty nine stocks hitting
all time highs fifty two week lows. Only got five
all time lows. I've got two. So all right, fifty
two week hys, I've got one hundred and fifty. I'm
gonna round up one hundred and fifty. There's one hundred
(23:24):
and forty nine. Let's just say there's one hundred and
fifty fifty two week lows or five. Wow. Now, last
week when the market was falling apart, it was the
exact opposite. Movers down hundreds, movers up single digits or
maybe low double digits on any given day. So in
real time, I can see stocks breaking out, I can
(23:47):
see stocks breaking down. They're updated in real time, and
I can see movers up and down. I can see
highs and lows. I can see extended hours. Guess what.
We also have a setup se wave in magic wand Adam.
What do I want to see? This is what we
built right and anything you want to see feel free
send us an email info at market terminal dot com.
(24:10):
The website's breakouts and setups, but that's the email address
that we're currently using. So our setups. We've got tight setups,
broad setups, large cap setups, and smaller mind cap setups. Again,
this way you can see the stock before it breaks out. Now,
why do I want to do that? It gives me
an edge. Think of it this way. If I tell you, oh,
(24:32):
this guy broke out and he's up twenty percent, great,
what's in it for me? Setups, that's what's in it
for you. In addition to the real time breakouts, in
addition everything else I mentioned, look at keeping your finger
on the markets, both getting a look under the market's hood.
We also added a history section which shows historical breakouts.
We just started tracking them, so we can't go back
a year from now, but just a few days ago
(24:53):
we started tracking them. So now you can see, hey,
is how much percent above the pivot above the entry point?
The breakout point is the stock sort in by strongest
percent to lowest all that's really powerful. So again sharing
it with the intention to help, nothing more, nothing less,
all Right, onto other subjects that are equally if not
more important. When you find a stock that you like,
(25:15):
what do you do? Adam, I get that question all
the time. Well, position sizing is super important, more importanto,
like they say in Spanish, why because if you have
too big of a position, the size can really throw
off your emotional equilibrium. Meaning what if the position's too
(25:39):
big for your portfolio and it goes down a little bit? Remember,
stocks go up downer sideways, and stocks do go down,
even the strong ones. If it's too big of a position,
people end up making emotional decisions and they'll sell it
or blow out of it prematurely and then miss an
(26:01):
even bigger move because it's too much of their portfolio.
Speaker 4 (26:06):
So on.
Speaker 2 (26:06):
Like n Video for example. Right now, even with the comeback,
is down fifteen percent from its fifty to two week
high just hit three or four weeks ago. I mean,
that's a pretty decent decline if you ask me. That's
you know, correction. Territory pallenteers down twenty percent, and that's
with the rally back this week from the fifty two
week high just a few weeks ago. So if I
(26:27):
had one hundred percent of my portfolio in one stock
and it goes down fifteen percent or twenty percent. I
just lost twenty fifteen or twenty percent of my portfolio.
No point, No, that's not good. Now, if it goes
down fifty percent or even like page, your duty PD
goes down twenty gaps down on me, on learnings or whatever,
Bye bye, and it's very difficult to recover. It's not me,
(26:50):
it's just the math. If you look at the math, folks,
the small losses much easier to recover from than the
big losses. Meaning, if you buy something just easy math
and it goes down fifty percent, you need one hundred
percent gain to get back to even. You buy something
at one hundred, it goes to fifty. Now the stock's
(27:10):
at fifty. You lost fifty percent from fifty. For it
to go back to one hundred, it has to go
up fifty. So fifty plus fifty is one hundred percent
of fifty for it to go back up. You just
lost fifty percent, needs one hundred percent gain to go
back to even. How often does the stock go up
one hundred percent, especially after it's just cut in half?
Extremely rare, So you're down ten percent, you need eleven
(27:31):
percent game to get back to even. Twenty five percent
down thirty three percent game to get back to even
Just knowing how math works and then it's not linear
set me free in a very big way because now
I can position size not based on my entry to
exit like I used to do, based on the impact
on my portfolio. So the sizing of the position will
(27:54):
adjust based on the how it impacts my portfolio. If
I buy it one hundred, I have a ten percent stop,
let's say, which is very wide for me. Some people
go wider, but for me it's I usually five percent
seven percent below my entry. But let's just say easy math,
I buy it at one hundred, I have a cell
stop at ninety, I'm down, you know, Okay, the stock
goes down ten percent. Then I sell it in this
(28:14):
hypothetical example, Well what does that tell me what my
position size? Did I buy the entire my portfolio? One
stt No. I used to doing the old days when
I got started, when a teenager, I didn't know any better.
I was in the nineties. I'm like, oh yeah, just
go all in, you know. No, I a quick way
of getting the account to pretty much negative, not even
zero below zero, And then what happened was get you
(28:38):
get hit. So if it's a smaller position, let's say
it's a ten percent position and it goes down ten percent,
I get stopped out. I lose one percent of my
overall portfolio. So when I size things now again, I'm
just creating hypothetical examples here, and no investment advice and
do your own due diligence and all that fun stuff.
This is just general and informational purposes. Only what happens.
(28:58):
I can control myself and my reaction when the market
goes down, because if it's a small position and the
worst case scenario is if it does drop ten percent,
I know I'm gonna only lose one percent of my portfolio.
So if I have one hundred thousand dollars portfolio, lose
one thousand dollars, okay, I can stomach that. So when
it goes down, I'm not going to quote unquote panic
(29:20):
or freak out or any other word you want. I
can stay calm because the position size and the exit
was determined before I even entered. So before I ask
enter anything, I always ask myself when am I going
to enter, When am I going to exit? And how
much do I risk if I'm wrong? Why? Because that
gives me a semblance of control. Think of like a
(29:43):
flight path. So it gives me the ability to say, oh, okay,
if there's turbulence or if there's weather, I can adjust course.
Adjust right. Stock goes up great, But it gives me
the ability to plan, and then if there's another position
I like, work, cash in this firepower for a second position.
So on and so forth. And then any one stock,
(30:07):
it's not going to destroy my portfolio because it's sized
correctly in advance. So it helps me prepare for those
inevitable pullbacks and corrections and so on and so forth,
because they have you know, especially with these big growth
stocks that we like to that I person like the
leaders that I like to invest in, trade and so
on and so forth, they're gonna have big swings both
(30:30):
down and up. There's upside volatility and there's downside volatility. Right,
it's just the Wall Street lingo trying to it's a
euphemism for the market's going to go up. But the
stock's going up a lot and it's going down a lot.
But I want to be prepared. If I had too
much of my portfolio, I'm just gonna get out because
I can't withstand a normal pullback, and then I'll miss
(30:50):
the inevitable rally, the green light red light, I'll miss
the green light that follows the pullback. But if it's
positioned properly, and I thought all of that out in advance,
guess what, I can breathe the collective side of relief
and say, oh, okay, this is not exactly gonna I
know what's happening. I can plan this already. It's not
going to crush me or whatever, throw me off or
(31:12):
anything like that. So that's really really it helped me
out a lot. It gave me a sense of structure,
and that structure allows me to be disciplined. And that
discipline is super, super super important because over time, it's
being consistent and being disciplined. That's what wins just about
(31:32):
any race. So we're in a situation here as you
go through and you look for leaders, and you look
for stocks, you look for breakouts. Understand, we're in a
ble market. Understand, Oh there's the music. All right, Understand
I'll be that right back with a lot more to cover.
Understand there's always another trade in front of me.
Speaker 5 (31:50):
But anyway, I'm Adam, Sorryhan, this is the one and
only Investor's Edge.
Speaker 1 (32:14):
You're listening to?
Speaker 2 (32:16):
What are you waiting for?
Speaker 4 (32:18):
This one?
Speaker 2 (32:20):
Ready?
Speaker 1 (32:25):
We can't recalled Bob.
Speaker 2 (32:41):
And welcome once again to Investor's Edge. I'm Adam, sorryin
in for Gary k who's out today. So a few
things here as we wrap up and last few minutes
left in the show, I want to wish everybody very
happy and healthy Thanksgiving and holiday season. The markets are
closed on Thursday as a reminder, and then Friday is
a half day market closed at one Eastern. All Right,
(33:02):
as we go into in the week, we're in a
bull market. These markets are strong. Just recap what we
covered so far. We had every chance in the world
to fall last week. Instead we rallied and we rallied
hard this week, which is very impressive. Small cap mid
cap in disease or up on the month, which is
very impressive. I wouldn't be surprised if the big caps
aren't up on the month by in the next few days.
By the time and the month rolls around, and then
(33:23):
December tends to be a strong period as well. So
actually Friday is the last trading day of November and
then December first is Monday, so we'll see. We'll see
what happens on Friday. For friday's a Black Friday and
it's a half day. So either way, even if we
close in the upper half of the range, it's still
a very strong month. We've been up in every single
month since April. This month, maybe down just a little bit,
(33:48):
that's okay, it happens, But we closed the upper half
of the range. Subtle but strong sign of strength. So
a few other things here. Getting an edge in the market,
investors edge right, looking at the stock look at the
stocks markets of it's a stock market, it's also a
market of stocks, right, Lots of stocks are out there.
What are they doing? Learn that skill. You don't have
(34:10):
to use breakouts of use whatever you want. I just
built it because it's easy and it's super super simple.
But use whatever you want. A lot of this information
is available online. Stocks moving up, stocks moving down, stocks
moving up on volume, stocks moving down on volume, after hours, movers,
you know, find those stocks you want to scan. Scam
I scan for years, I still scan. I've built a
(34:31):
lot of this to automate it. Save me hours and
hours and hours and hours and hours and hours. But
don't use anything you want find the stocks and just listen.
Find the stocks that are moving up down? Do we
have more movers up, more movers down? Simple? Keep it simple.
It's so powerful and again you get the information anywhere
(34:52):
you want. So we talked about position size, spoke about
understanding numbers, how math as works, why math is so powerful.
At the end of the day, this is all numbers.
Could say anything you want, it's numbers, percent dollars. Another skill.
I try to share timeless lessons with you that I
(35:13):
quote unquote learn along the way, because I'm not on
every day like Gary. So when I'm on, I want
to just zoom out and share timeless stuff with you
that you know, lessons you could use. I think nuggets
have changed my life. So one of the things that
happened to me as I grew my portfolio was money.
It would mess with my head. We're all emotionally attached
to money. It's very simple. Doctors can't operate on their
(35:35):
immediate family because there's an emotional attachment there. So we
can trade our and invest our own money. But understanding
how to deal with that relationship is really important. So
as I grew my account, I would get caught up
with the dollars. So it's like a doctor doing surgery
and just staring at how much money is making every
second while he's doing the surgery. It doesn't make sense.
Don't do that. It's not a good way of doing it.
(35:56):
I didn't know that. I still make that mistake, but
I hide the money bar why because I want to
have a good system. I want to follow the rules.
Did it break support? Did it didn't breakout? Fail? What
are my rules of entering? What are my rules for exiting?
I mentioned earlier tonight in the show. Hey, three questions,
I asked myself. Or am I going to enter? Or
am I going to exit? If I'm wrong? How much
(36:17):
do I risk in my portfolio? If I'm wrong, that's it? Okay?
Am I following those rules? Relentless consistency, being disciplined. Many
times I want to just blow out of a trade.
Just because I want to blow out of a trade.
Oh well, how much money that is? That could buy
a car or whatever, buy an iPhone, whatever, it doesn't matter,
(36:42):
buy a house, it doesn't matter. And that would mess
me up. I hit a wall, and then what set
me free from that wall was thinking in percentages, not
dollars and folks. That is extremely powerful. When you zoom
out and you think in percentages, all of a sudden,
(37:03):
you're that doctor doing the work the right way and
hopefully having the patient come out healed and not standing
there staring at the dollars and cents. Why because there's
no emotion to a percent. I don't know anybody that's
emotionally attached to four percent, or twenty two percent or
seventy five percent. I know everybody that's emotionally that to
(37:25):
two thousand dollars, twenty thousand dollars, two million dollars. If
I give you two million dollars, you're happy, you're sad,
and of course you're happy. I don't know anyone that's
really upset or sad when they quote unquote make money.
Sometimes they are, but it's rare that they're sad. So
to speak. Everyone's happy when they make money. They're not confused.
I'm happy, and I said, I'm pretty happy when I
(37:46):
make money, specially in the market. Okay, you lose money,
same thing, sad. Simple. So understand those emotions and how
they impact your decisions. Set that set yourself free. Nobody's
emotionally I use this example in my book books called
Psychological Analysis was number one at Amazon every day for
three months. I recommend people get it if you like it.
It's my life's work, so to speak. But it teaches
(38:07):
people how to make rational, not emotional decisions with their money.
And there's cartoons in the book. But I use an
example of a hanger. Nobody that I know is emotionally
attached to a hanger in a closet. I can make
the right decision for that hanger based on the merits
of the situation without having an emotional cloud impact my judgment.
(38:28):
When a doctor gives the surgery on his wife or daughter,
or she does it on her husband or her son
or whatever it is, the emotions get involved. That's why
the doctors can't perform surgery on their immediate family. So powerful,
But there's people are emotionally attached to money understanding most
of the time this is happening in your unconscious mind.
(38:49):
They're not even aware. It is fear greed. Think of
the decisions, and the way you do this is look
at your actions post analysis. Print out that will. You
can take screenshots if you want. What I used to
do is print down still do it, print out all
my trades, winners losers, two folders, a winning folder, losing folder.
(39:10):
That's it. The trade either winds will lose if it's
a wash. If it made money, it's going to win folder.
If it loses money, it's a wash goes lose folder.
See the perent of binary win lose. That's it. So
we're in a situation where, oh, okay, how do I
(39:31):
find patterns? Look at the actions? What actions did I take?
I bought this, did I chase it? Did I buy
it too early? And then over time. If you do
that and you review those trades at the end of
the month, end of the quarter, end of the year,
you'll start detecting patterns in yourself that otherwise you wouldn't
be aware of. Super powerful and write down on the
(39:54):
chart when you print it out or you take a screenshot,
the reasons why you bought it, the reasons why you
sold it. Lots of times you'll see you, quote unquote
broke your own rules. Not you specifically, I don't know you.
I'm just speaking me generally, humans, right, creatures. So I
think that's all the time we have for today. I
hope this is helpful. I want to wish everybody are
(40:14):
very happy and healthy Thanksgiving and holiday season. Thank you
very much for being here. This is the one and
only Investor's Edge.
Speaker 1 (40:22):
This has been Investor's Edge with Gary Kult's moom on
biz Talk. To listen to past episodes or to get
in contact with Gary, go to garyka dot com. That's
garyka dot com.
Investor's Edge with Gary Cultbomb, straight talk about you and
your money now from the Viz Talk studios. Here is
Gary Cultbomb.
Speaker 2 (00:11):
And welcome once again to Investor's Edge. I'm Adam Sarhan
in for Gary Kay who's out today. Today is Wednesday,
November twenty six, twenty twenty five. Want to wish everybody
a very happy Thanksgiving also holiday season. We have a
great show for you tonight. As always, we've got a
lot to cover and jump right in and admitted here,
but a little housekeeping just as a quick reminder, if
(00:33):
you don't get this show in your city, you can
go to gary k dot com. You can listen live
or archive. We are live Monday through Friday six to
seven pm Eastern. Also at gary k dot com, you
can follow Gary on Twitter or x formerly known as Twitter.
Just press the button. You can subscribe Gary's morning notes
and directly your inbox for free. You can email Gary
directly ask about his money management services, read his commentary,
(00:56):
and if you want more. Gary's premium service is conviction
leaders dot com. Once again, you could take a free
trial over there at conviction leaders dot com. He updates
members several times a day with what he sees with
annotated charts. He does daily webcasts, in depth webcasts, gives
pivot points by points, you know, actionable ideas, and sell points.
(01:18):
All this fun stuff, A lot of that's available, well,
all that's available at conviction leaders dot com. All right, everybody,
this is a I guess a holiday shortened holiday week.
A lot's happening, and I'm going to read notes from
Gary first and then I'll share everything else second, because
I want to make sure you know, I'm just a messenger,
like they say, I want to make sure that I
can get my notes across and not miss anything. So
(01:42):
with Gary, the big thing here is last week the
market was selling off hard. And it's interesting because markets
reminds me of like a green light red light scenario
where after every green light, what happens, you get a
yellow light and then you get a red light. After
every red light you get a green light, and vice
versus green, red, red, green. Just to keep it simple,
(02:03):
markets are the same way. Markets go up. That's a
green light, all right. Pause, yellow light's a pullback, which
is what just happened, or going down. A downtrend would
be a red light, you know, red light, yellow light
doesn't matter to me. It's down, either up or down
right or sideways. That's all the market can do. So
market goes up as a green light goes down. Sideways
are down. That's a red light. And then what happens
after every pullback you get another green light, after every
(02:25):
red light you get a green light, and then goes
back because I want and so forth. So we had
a very steep pullback in the first few weeks of November.
This week shortened holiday week, we had a very very
impressive rally, or we're having not had We're having a
very impressive rally as the market bounces from over sold levels.
(02:46):
So few things here's from Gary. Gary has been saying
basically an outstanding comeback. When I go back and backdate
my charts to the close of last Thursday, I would
have bet anybody we were heading lower, and instead we
walk into a gap up on front and nothing but upside.
Since Gary says he thinks the combination that the thought
of no FED rate cut to a guarantee of a
(03:08):
FED rate cut in December is doing the trick and
then leaking that. Kevin Hassett, being the new fedhead, put
some whipped cream on top of the ice cream, because
we will. He will be an arm of Donald Trump,
who wants one percent FED funds rate, which is much
lower than where it is now. Basically wants to fed
to cut rates. Keeping my markets just backed into the range,
(03:29):
the prior trading range it was in before before the
big drop. But the broad market is really starting to
pick up. And he mentioned a lot of this earlier
in the week on Friday as well, So those are
notes from Gary again. Coming into this week, market was
over sold, it was due to bounce. And what happened,
(03:49):
instead of going down even further, we had a massive,
massive rally, and in fact the rally was so big
that on a weekly chart if you look right now
on the QQQ and just type in weekly chart on
any charging platform you want, we pretty much have recovered
all of last week's decline, and earlier today we were
(04:12):
actually above the high of last week. So the entire
sell off from last week has been just last week
has been repaired. Not only that, we're back above the
fifty day moving average, which is super super important, so
big recovery this week. Now, Volume which again price is primary,
(04:32):
volume is secondary, has been below average. It's a shortened
holiday week, any enter, any reason you want. What matters
for me is very simple. It's price first, everything else second.
Why Because what shows up in your statement price. Everything else,
including volume and earnings and schmirtings and fundamentals and technicals
(04:55):
and charts and smarts and everything else, doesn't show up
in the statement. It's price. So that to me is king.
That's primary driver's set, everything else secondary. Not to say
volume isn't important. It is important, but price is more important.
That's all same thing with the earnings and charts and
all that other stuff. Price is primary, everything else is secondary,
in my opinion. So what happens is prices get stretched
(05:18):
both up and down. Why because humans are creatures of
emotional creatures. We make decisions based on emotions. We justify
it later with logic, but we're emotional creatures and that's
just the way the markets works. They get stretched up
and down. So from the reason high in late October
up until you know last week's low, I think the
NASDAC went down about six seven percent, set eight percent,
(05:41):
somewhere in that range, was under ten percent. It was
just a pullback, and that happens multiple times. The S
and P five hundred. Same thing happens multiple times where
you get these pullbacks. The S and P now is
only percent and a half below and all time high.
I mean pretty much the entire pullback over the last
few weeks has been recovered in the S and P.
Then ASDAX only three and a half percent below an
(06:02):
all time high. Not to say this is a strong environment,
not to say, hey, need a pallet the table, Bye
bye bye bye bye. No, no, no, no, no, it's
just this is I have to respect the strength. Like
Gary said last Thursday, everything under the sun said, hey,
we're probably going way lower. Guess what. Instead, we're back
above the fifty, back above the twenty one day moving average,
(06:24):
and within a few percentage points one or two good updates,
and we're at all time highs super strong. Remember, folks,
it's not the news that matters. It's the reaction to
the news. And when the markets refuse to fall in
a meaningful way, what that tells me is that instead
they're going to go up. Doesn't have to we can
(06:44):
easily roll over tomorrow. Anything can happen. There's news that
in West Virginia national Guard had died in DC shooting,
or two National guards have died in DC shooting, and
news can come out at any point in time that
could be bullish or bearish, but the reaction to the
news folks as well matters. As we head into the
end of the week. On Friday's a half day, Tomorrow's
(07:06):
markets are closed on Thursday. I always like to zoom
out look in a weekly Okay, guess what we were
down three weeks in a row in the Nasdaq, and
we recovered all of last week's low and then some
this week. That could change, but most likely Friday be
a quiet day, a little bit up. I rarely see
huge outlier moves on Black Fridays, I mean the day
after Thanksgiving. It closes at one o'clock Eastern that day.
(07:28):
It could, but it's rare, so most likely this is
an up week in the market for the month, which
is very impressive as well. If you zoom out look
at a monthly chart, we're in the upper half of
the range. That is extremely impressive considering all that happened
in four trading days. Big recovery. And I said that,
I think last time I was on the show just
a few weeks ago. Hey, in October, we opened lower,
(07:50):
closed higher, and I wouldn't be surprised if it happened again.
I didn't think it would happen again either. I agree
with Gary. We look at last Thursday like, Okay, we're
probably going lower here, but the recovery where we are
now the upper half of the range. Even if we
close here for the month as we end, you know
the end of month is right around the corner. It's
an extremely impressive month. The recovery, assuming that we don't
(08:15):
have a huge sell off before the month end. But
if we just close here in the upper half of
the range, or if we close up on the month,
extremely impressive, both in the S and P. In the Nasdaq,
you can go even further. Look out the Dow upper
half of the range. The Russell two thousand, which is
weaker on a relative basis, is actually up on the
month as of right now. Now that could change the
(08:38):
MidCap md Y, the S and P four hundred up
on the month. Extremely impressive. Doesn't mean we have to
head higher. All it means is that we're in a
bull market, and surprises in bull markets typically happen to
the upside, not the downside. That's where my thought process is.
(08:59):
So we have a situation here where Okay, maybe the
baton is being passed off like a relay race from leadership.
AI stocks were leading on the way up. Maybe now
they're going to pause for a little bit we can
see other areas start catching up. Or maybe the AI
stocks had a little pullback or correction and now they're
going to go right back up again. Either way, I'm
(09:20):
open to anything. All I know is that the bears
had every chance in the world to send the market
lower and they didn't. Instead, we rallied, and now we're
on track. Some of these indisses, like the small ones
in the midcaps are already up on the month, which
is extremely impressive. And the big ones the S and P,
n HASDAC and DOW are almost up on the month,
(09:42):
again extremely impressive. So and we're back above the fifty.
And sometimes you just have to zoom out and just
watch these moving averages and say, oh, okay, where are we,
where'd we close? What happened? What matters? You know? Yesterday
we had a little bit of selling into the clothes
was the last few minutes. Same thing today, No big deal,
(10:04):
No big deal. Dows up three hundred and fifteen points.
Let's see here give you some end of day data.
What happened today. Let's go here. It's a nice update.
Todays up Yeah, about three hundred fifteen points close at
forty seven four twenty seven. The S and P's up
forty six points, close at sixty eight twelve, and the
Nasdaq is up one hundred and ninety points thereabouts, close
(10:26):
at twenty three two fourteen. So it's an update that's important.
Keep that in mind as you move forward. It's really
important because it's not the news, it's the reaction to
the news that matters. Up next, We've got a lot
more to cover. I'm Adam Sorrhand.
Speaker 3 (10:44):
This is the one and only investors Edge.
Speaker 4 (11:02):
Hi, I'm Gary Kolbaum, hosted a nationally syndicated radio show,
Investor's 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,
(11:25):
all to assist you in achieving your financial goals. Understanding
not all individuals have the same needs, will 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 complementary portfolio review. The number to
call is eight eight eight four two two five five
(11:47):
five nine. That's eight eight eight four two two five
to five five nine. That's eight eight eight four two
two five to five, five to nine. Investment advisory services
offer through Call Capital Management.
Speaker 5 (12:05):
It's time to switch on the integrator units and to
get the brain cells working.
Speaker 1 (12:09):
You're listening to Okay, it's promise it could be fun.
Speaker 5 (12:14):
Investor's Edge the last bastion of quality programming.
Speaker 1 (12:18):
With Gary called bomb. It doesn't get better than.
Speaker 6 (12:20):
This, and welcome once again to Investor's Edge.
Speaker 2 (12:35):
In case you're just joining us from just any part
of the show, you can go to gary k dot
com rewind, fast forward, listen live, or archive on at
your convenience on any device, all for free on gary
k dot com. All right, so a few things shortened
holiday week. Spoke about the very impressive rally we had
since last Friday, gap up or last Thursday, but last
(12:55):
Friday and what's happening now is the environment remains very
really just remain strong. Let's look under the market's hood.
So I like, you know, we're in a two few
thoughts here. Number one, it's a stock market, but really
it's a market of stocks. What makes the Nasdaq go up?
Where the S and P five hundred go up, the
(13:17):
NASDAK one hundred, the SB five hundred, whatever it is, right,
it's simple, it's the stocks in that index, really really
really simple. So okay, where are we right now? When
you look at the stocks, the market of stocks, if
you see a lot of movers up and a little
bit of movers down, guess what little look under the
market's hood, a little edge, right, the investor's edge. So
(13:42):
I would do this manually. I would scan thousands of stocks,
and I would sit there and say, okay, moving up,
moving down? Which stocks are breaking out? And like Gary
taught me and I learned from Gary, just get a
yellow pad and paper and just write and manually do it.
Next page, movers up, movers down, circle the ones that
we like, breakouts, setups, which ones have strong earnings? Which
(14:05):
you know, do the work. Then I'm like, all right,
we live in twenty twenty five. There's a way to
automate this took me about two years. Were able to
automate it, build the website, share it with other people
to help other people. It's called Breakouts and Setups dot com.
So it's Breakouts and Setups dot com. You can get
access to free three free breakouts every day, breakdown, setups,
(14:27):
everything about the share all for free. You want to
take a free trial, fight by all means, go for it.
But it's free the first three and then the rest
of them to unlock it. There's a paid wall behind it.
So and again it's thirty nine dollars a month, so
it's not like I'm sitting here saying, oh it's a billion.
That's really simple. But there's fees to charge data for
this stuff. That's why there's a fee, right all right,
So it cost me money right to put this up.
(14:48):
So that's why there's a small fee here at thirty
nine dollars. But again you can try it, you don't
like it, cancel, you like it, stay. I love it,
and that's why I built it. So breakouts under the
markets hood. We had fifty two stomps breaking out today,
so fifty two stocks breaking out breakdowns. We had six,
So fifty two breakouts. Six breakdowns right there. That tells
(15:13):
me a lot. Remember I always like to say the
market is speaking, and then ask are you listening? Why
the market's not literally speaking to me verbally? It's nonverbal.
In fact, nonverbal communication, folks, is how most humans communicate,
more than verbal. It's google it. It's crazy when I
(15:35):
learned that stat most communication is nonverbal. Obviously humans speak,
so for the verbal communication as well, but nonverbal communication
is extremely part of how humans communicate. The markets aren't
literally talking to me, but they're nonverbally speaking. And here's
how I listen. One of the ways I listen. Look
at the price action first and foremost. Second, look at volume. Third,
(16:00):
look under the market's hood. Look at the number of breakouts.
Almost fifty two. We had almost sixty. I'm gonna round
up here to sixty. Why for the simple math that
there's six breakdowns almost ten x the number of breakouts
ten times six is sixty. We have fifty two breakouts.
That's almost ten times a number of breakdowns. To me,
(16:20):
that is a bullish day. Bullish day. Movers. We have
movers up and we have movers down. Today we had
three hundred and eighty two stocks moving up. That means
stocks that are over three percent up over three percent,
only sixty eight moving down three hundred and eighty two up,
sixty eight down in the right. And this all updates
(16:44):
in real time, folks. Right when the market opens, I
can see breakouts admitted into it, two minutes into it,
five minutes, in ten minutes, all day and it updates.
So when the market's really weak, if the stock gets
above the breakout point, it's a breakout. If it goes
below the breakout point, it's not a breakout anymore. We
move it over to another list. So we only want
(17:05):
to keep stocks on that are actually above the pivot
point or above the breakout point on that list, like
Apple AAPL. Apple broke out yesterday. It was on the
list almost all day, but it sold off in the close,
closed below the breakout point or the pivot point. This
was Apple yesterday, So we moved it from the breakouts page.
We moved to the blow breakout point page. Why because
(17:27):
by the end of the day didn't it wasn't above
the breakout point. Right, So, all of a sudden, if
you see a strong open and the market sells off
all day. You have a lot of breakouts in the morning,
right around the open, and then the breakouts start moving
off that page to another page below breakout point. Guess
what that's little a subtle sign of strength, little edge
that oh the market might be getting weaker, or the
(17:48):
opposite could be true. You don't have a lot of breakouts,
and then all of a sudden, boom boom, boom boom,
a lot of breakouts start showing up. That tells me
something's happening under the surface. And lots of times, just
yesterday I saw that. I think there was like six hundred,
eight hundred movers. Okay, there's one of two so on
on Monday and Tuesday, two up days in the market,
(18:09):
I believe yesterday. Let me check on to make sure. Yeah, yesterday,
which was Tuesday, we had eight hundred and sixty six
movers up, sixty six movers down. I saw this around noon.
The market was down because a few big cap stocks
were down. Eight hundred and sixty six movers up yesterday,
sixty six movers down. I'm like, there's no way, And
(18:29):
what happened? Market rallied right after I saw it. It happened
and I just got lucky right after I saw that
the rest of the day of the market rally for
the rest of the day, boom boom, boom, boo boom.
It was six hundred and seven hundred and eight hundred
close at eight hundred sixty six movers up again. A
subtle but important sign of how the markets are communicating
in real time. And that was Tuesday. If you go
back and you look at Monday's action on Monday, there
(18:53):
were six hundred and thirty one stocks moving up, one
hundred and two moving down again. It's the market get speaking.
My job is to listen when I look at this
throughout the day, and it's updating in real time. Lots
of times the market's actions masked with a few big
cap stocks like Apple's a big waiting index in the
index you know, you know the big ones an Apple, Google, Microsoft,
(19:16):
so on, and so for alphabet you know it's Google
and Meta instead of Facebook. All these big stocks, Oracle,
if you have the big one, crawl com. They big
weighted stocks, big market cap They mask a lot of
the action under the markets hood. But this shows it
to me in real time, and it updates in real time,
up and down. Now we've got gap up. We've got
(19:36):
seventeen stocks gapping up today, got seven gapping down, all right,
I'm going to go through them, and TNX gap down.
And it was a it was a breakdown to work
day gap down on earnings is z Scaler gap down,
broke both of the two hundred day a MBA, Amberella
gap down today, PD Chinese sorry page your duty down
(19:57):
twenty three percent, and one or two other ones. And
that's it for the gap downs. The ones that gapped
up asml nice gap up today close and lower half
of the range, robin Hood gapping up because bitcoin's recovering,
Tiva Teva, Tiva Pharmaceuticals. We have a lot of healthcare
stocks and biotech stalks breaking out. That's the next thing.
I'll get to Harmony gold hmy little gap up today. Again,
(20:22):
these aren't breakouts per se, they're just gap ups. We
have breakouts on another page, right, Urban Outfitters gapped up
nicely today, so on and so forth, and you can
go on and on and on and on and on,
and then you go to the next page. We have
new highs and new lows. There's fifty two week highs
and all time highs. I check that throughout the day
(20:43):
and they update in real time. Oh, there's all the
time we have for right now. I'll get back to
this in a second. I'm Adam sorry. I want to
thank you very much for being here. This is the
one and only Investor's Edge.
Speaker 1 (21:11):
You are listening to.
Speaker 2 (21:12):
America is talking small Investor's Edge. He's gotta be beat
with the crowd.
Speaker 1 (21:18):
Is just on his feet here, just said. You're on
a boy with Gary called Bob Come highly recommended. You're
gonna feel better if you talk to him.
Speaker 6 (21:34):
And welcome once again to Investor's Edge.
Speaker 2 (21:38):
I'm Adam Sarhan in for Gary Kay. So today is
November twenty six. We want to say Happy Thanksgiving. It's
a shortened holiday week. The market is closed tomorrow and
on Thursday, and it'll be a half day on Friday.
If the market closes today right here, right now, it's
gonna be up nicely on the week, back above the
(21:58):
fifty day, back above the twenty one. Depending on the
index you want to look at on a weekly basis
and daily basis as well. Well, it's up on the week,
it's up on the day as well, but it's up
on the week. Also for the month, the S and
P and NASDAK are about to turn positive. They're in
the upper half of the range. The Russell two thousand
and the MidCap S and P four hundred are already
positive on the month, which is extremely impressive considering last
(22:21):
week the market looked like it was going to keep,
you know, roll over and go way lower. So we're
in a situation now where the environment is strong. Just
to be very clear, and we're going through and talking
about and discussing how I take a look at the
market action under the you know what's happening throughout the day,
take get a little bit of an edge under the
markets hood even at the end of the night, after
(22:41):
the market closes. Go through. It takes two minutes. Click
on breakouts, click on breakdowns, which one one up or down?
Think of it like a game of tug of war.
How many movers up? How many movers down? How we
ended off with fifty two week highs? How many fifty
two weeks high? And by the way, if this doesn't
work for it, you don't have to do it. I'm
just showing what works for me. In case it does
help you and work for you, I want to number
(23:04):
of fifty two week highs throughout the day, and this
updates folks in real time. So I've got one hundred
and forty nine stocks today that are hitting new fifty
two week highs, and I've got fifty nine stocks hitting
all time highs fifty two week lows. Only got five
all time lows. I've got two. So all right, fifty
two week hys, I've got one hundred and fifty. I'm
gonna round up one hundred and fifty. There's one hundred
(23:24):
and forty nine. Let's just say there's one hundred and
fifty fifty two week lows or five. Wow. Now, last
week when the market was falling apart, it was the
exact opposite. Movers down hundreds, movers up single digits or
maybe low double digits on any given day. So in
real time, I can see stocks breaking out, I can
(23:47):
see stocks breaking down. They're updated in real time, and
I can see movers up and down. I can see
highs and lows. I can see extended hours. Guess what.
We also have a setup se wave in magic wand Adam.
What do I want to see? This is what we
built right and anything you want to see feel free
send us an email info at market terminal dot com.
(24:10):
The website's breakouts and setups, but that's the email address
that we're currently using. So our setups. We've got tight setups,
broad setups, large cap setups, and smaller mind cap setups. Again,
this way you can see the stock before it breaks out. Now,
why do I want to do that? It gives me
an edge. Think of it this way. If I tell you, oh,
(24:32):
this guy broke out and he's up twenty percent, great,
what's in it for me? Setups, that's what's in it
for you. In addition to the real time breakouts, in
addition everything else I mentioned, look at keeping your finger
on the markets, both getting a look under the market's hood.
We also added a history section which shows historical breakouts.
We just started tracking them, so we can't go back
a year from now, but just a few days ago
(24:53):
we started tracking them. So now you can see, hey,
is how much percent above the pivot above the entry point?
The breakout point is the stock sort in by strongest
percent to lowest all that's really powerful. So again sharing
it with the intention to help, nothing more, nothing less,
all Right, onto other subjects that are equally if not
more important. When you find a stock that you like,
(25:15):
what do you do? Adam, I get that question all
the time. Well, position sizing is super important, more importanto,
like they say in Spanish, why because if you have
too big of a position, the size can really throw
off your emotional equilibrium. Meaning what if the position's too
(25:39):
big for your portfolio and it goes down a little bit? Remember,
stocks go up downer sideways, and stocks do go down,
even the strong ones. If it's too big of a position,
people end up making emotional decisions and they'll sell it
or blow out of it prematurely and then miss an
(26:01):
even bigger move because it's too much of their portfolio.
Speaker 4 (26:06):
So on.
Speaker 2 (26:06):
Like n Video for example. Right now, even with the comeback,
is down fifteen percent from its fifty to two week
high just hit three or four weeks ago. I mean,
that's a pretty decent decline if you ask me. That's
you know, correction. Territory pallenteers down twenty percent, and that's
with the rally back this week from the fifty two
week high just a few weeks ago. So if I
(26:27):
had one hundred percent of my portfolio in one stock
and it goes down fifteen percent or twenty percent. I
just lost twenty fifteen or twenty percent of my portfolio.
No point, No, that's not good. Now, if it goes
down fifty percent or even like page, your duty PD
goes down twenty gaps down on me, on learnings or whatever,
Bye bye, and it's very difficult to recover. It's not me,
(26:50):
it's just the math. If you look at the math, folks,
the small losses much easier to recover from than the
big losses. Meaning, if you buy something just easy math
and it goes down fifty percent, you need one hundred
percent gain to get back to even. You buy something
at one hundred, it goes to fifty. Now the stock's
(27:10):
at fifty. You lost fifty percent from fifty. For it
to go back to one hundred, it has to go
up fifty. So fifty plus fifty is one hundred percent
of fifty for it to go back up. You just
lost fifty percent, needs one hundred percent gain to go
back to even. How often does the stock go up
one hundred percent, especially after it's just cut in half?
Extremely rare, So you're down ten percent, you need eleven
(27:31):
percent game to get back to even. Twenty five percent
down thirty three percent game to get back to even
Just knowing how math works and then it's not linear
set me free in a very big way because now
I can position size not based on my entry to
exit like I used to do, based on the impact
on my portfolio. So the sizing of the position will
(27:54):
adjust based on the how it impacts my portfolio. If
I buy it one hundred, I have a ten percent stop,
let's say, which is very wide for me. Some people
go wider, but for me it's I usually five percent
seven percent below my entry. But let's just say easy math,
I buy it at one hundred, I have a cell
stop at ninety, I'm down, you know, Okay, the stock
goes down ten percent. Then I sell it in this
(28:14):
hypothetical example, Well what does that tell me what my
position size? Did I buy the entire my portfolio? One
stt No. I used to doing the old days when
I got started, when a teenager, I didn't know any better.
I was in the nineties. I'm like, oh yeah, just
go all in, you know. No, I a quick way
of getting the account to pretty much negative, not even
zero below zero, And then what happened was get you
(28:38):
get hit. So if it's a smaller position, let's say
it's a ten percent position and it goes down ten percent,
I get stopped out. I lose one percent of my
overall portfolio. So when I size things now again, I'm
just creating hypothetical examples here, and no investment advice and
do your own due diligence and all that fun stuff.
This is just general and informational purposes. Only what happens.
(28:58):
I can control myself and my reaction when the market
goes down, because if it's a small position and the
worst case scenario is if it does drop ten percent,
I know I'm gonna only lose one percent of my portfolio.
So if I have one hundred thousand dollars portfolio, lose
one thousand dollars, okay, I can stomach that. So when
it goes down, I'm not going to quote unquote panic
(29:20):
or freak out or any other word you want. I
can stay calm because the position size and the exit
was determined before I even entered. So before I ask
enter anything, I always ask myself when am I going
to enter, When am I going to exit? And how
much do I risk if I'm wrong? Why? Because that
gives me a semblance of control. Think of like a
(29:43):
flight path. So it gives me the ability to say, oh, okay,
if there's turbulence or if there's weather, I can adjust course.
Adjust right. Stock goes up great, But it gives me
the ability to plan, and then if there's another position
I like, work, cash in this firepower for a second position.
So on and so forth. And then any one stock,
(30:07):
it's not going to destroy my portfolio because it's sized
correctly in advance. So it helps me prepare for those
inevitable pullbacks and corrections and so on and so forth,
because they have you know, especially with these big growth
stocks that we like to that I person like the
leaders that I like to invest in, trade and so
on and so forth, they're gonna have big swings both
(30:30):
down and up. There's upside volatility and there's downside volatility. Right,
it's just the Wall Street lingo trying to it's a
euphemism for the market's going to go up. But the
stock's going up a lot and it's going down a lot.
But I want to be prepared. If I had too
much of my portfolio, I'm just gonna get out because
I can't withstand a normal pullback, and then I'll miss
(30:50):
the inevitable rally, the green light red light, I'll miss
the green light that follows the pullback. But if it's
positioned properly, and I thought all of that out in advance,
guess what, I can breathe the collective side of relief
and say, oh, okay, this is not exactly gonna I
know what's happening. I can plan this already. It's not
going to crush me or whatever, throw me off or
(31:12):
anything like that. So that's really really it helped me
out a lot. It gave me a sense of structure,
and that structure allows me to be disciplined. And that
discipline is super, super super important because over time, it's
being consistent and being disciplined. That's what wins just about
(31:32):
any race. So we're in a situation here as you
go through and you look for leaders, and you look
for stocks, you look for breakouts. Understand, we're in a
ble market. Understand, Oh there's the music. All right, Understand
I'll be that right back with a lot more to cover.
Understand there's always another trade in front of me.
Speaker 5 (31:50):
But anyway, I'm Adam, Sorryhan, this is the one and
only Investor's Edge.
Speaker 1 (32:14):
You're listening to?
Speaker 2 (32:16):
What are you waiting for?
Speaker 4 (32:18):
This one?
Speaker 2 (32:20):
Ready?
Speaker 1 (32:25):
We can't recalled Bob.
Speaker 2 (32:41):
And welcome once again to Investor's Edge. I'm Adam, sorryin
in for Gary k who's out today. So a few
things here as we wrap up and last few minutes
left in the show, I want to wish everybody very
happy and healthy Thanksgiving and holiday season. The markets are
closed on Thursday as a reminder, and then Friday is
a half day market closed at one Eastern. All Right,
(33:02):
as we go into in the week, we're in a
bull market. These markets are strong. Just recap what we
covered so far. We had every chance in the world
to fall last week. Instead we rallied and we rallied
hard this week, which is very impressive. Small cap mid
cap in disease or up on the month, which is
very impressive. I wouldn't be surprised if the big caps
aren't up on the month by in the next few days.
By the time and the month rolls around, and then
(33:23):
December tends to be a strong period as well. So
actually Friday is the last trading day of November and
then December first is Monday, so we'll see. We'll see
what happens on Friday. For friday's a Black Friday and
it's a half day. So either way, even if we
close in the upper half of the range, it's still
a very strong month. We've been up in every single
month since April. This month, maybe down just a little bit,
(33:48):
that's okay, it happens, But we closed the upper half
of the range. Subtle but strong sign of strength. So
a few other things here. Getting an edge in the market,
investors edge right, looking at the stock look at the
stocks markets of it's a stock market, it's also a
market of stocks, right, Lots of stocks are out there.
What are they doing? Learn that skill. You don't have
(34:10):
to use breakouts of use whatever you want. I just
built it because it's easy and it's super super simple.
But use whatever you want. A lot of this information
is available online. Stocks moving up, stocks moving down, stocks
moving up on volume, stocks moving down on volume, after hours, movers,
you know, find those stocks you want to scan. Scam
I scan for years, I still scan. I've built a
(34:31):
lot of this to automate it. Save me hours and
hours and hours and hours and hours and hours. But
don't use anything you want find the stocks and just listen.
Find the stocks that are moving up down? Do we
have more movers up, more movers down? Simple? Keep it simple.
It's so powerful and again you get the information anywhere
(34:52):
you want. So we talked about position size, spoke about
understanding numbers, how math as works, why math is so powerful.
At the end of the day, this is all numbers.
Could say anything you want, it's numbers, percent dollars. Another skill.
I try to share timeless lessons with you that I
(35:13):
quote unquote learn along the way, because I'm not on
every day like Gary. So when I'm on, I want
to just zoom out and share timeless stuff with you
that you know, lessons you could use. I think nuggets
have changed my life. So one of the things that
happened to me as I grew my portfolio was money.
It would mess with my head. We're all emotionally attached
to money. It's very simple. Doctors can't operate on their
(35:35):
immediate family because there's an emotional attachment there. So we
can trade our and invest our own money. But understanding
how to deal with that relationship is really important. So
as I grew my account, I would get caught up
with the dollars. So it's like a doctor doing surgery
and just staring at how much money is making every
second while he's doing the surgery. It doesn't make sense.
Don't do that. It's not a good way of doing it.
(35:56):
I didn't know that. I still make that mistake, but
I hide the money bar why because I want to
have a good system. I want to follow the rules.
Did it break support? Did it didn't breakout? Fail? What
are my rules of entering? What are my rules for exiting?
I mentioned earlier tonight in the show. Hey, three questions,
I asked myself. Or am I going to enter? Or
am I going to exit? If I'm wrong? How much
(36:17):
do I risk in my portfolio? If I'm wrong, that's it? Okay?
Am I following those rules? Relentless consistency, being disciplined. Many
times I want to just blow out of a trade.
Just because I want to blow out of a trade.
Oh well, how much money that is? That could buy
a car or whatever, buy an iPhone, whatever, it doesn't matter,
(36:42):
buy a house, it doesn't matter. And that would mess
me up. I hit a wall, and then what set
me free from that wall was thinking in percentages, not
dollars and folks. That is extremely powerful. When you zoom
out and you think in percentages, all of a sudden,
(37:03):
you're that doctor doing the work the right way and
hopefully having the patient come out healed and not standing
there staring at the dollars and cents. Why because there's
no emotion to a percent. I don't know anybody that's
emotionally attached to four percent, or twenty two percent or
seventy five percent. I know everybody that's emotionally that to
(37:25):
two thousand dollars, twenty thousand dollars, two million dollars. If
I give you two million dollars, you're happy, you're sad,
and of course you're happy. I don't know anyone that's
really upset or sad when they quote unquote make money.
Sometimes they are, but it's rare that they're sad. So
to speak. Everyone's happy when they make money. They're not confused.
I'm happy, and I said, I'm pretty happy when I
(37:46):
make money, specially in the market. Okay, you lose money,
same thing, sad. Simple. So understand those emotions and how
they impact your decisions. Set that set yourself free. Nobody's
emotionally I use this example in my book books called
Psychological Analysis was number one at Amazon every day for
three months. I recommend people get it if you like it.
It's my life's work, so to speak. But it teaches
(38:07):
people how to make rational, not emotional decisions with their money.
And there's cartoons in the book. But I use an
example of a hanger. Nobody that I know is emotionally
attached to a hanger in a closet. I can make
the right decision for that hanger based on the merits
of the situation without having an emotional cloud impact my judgment.
(38:28):
When a doctor gives the surgery on his wife or daughter,
or she does it on her husband or her son
or whatever it is, the emotions get involved. That's why
the doctors can't perform surgery on their immediate family. So powerful,
But there's people are emotionally attached to money understanding most
of the time this is happening in your unconscious mind.
(38:49):
They're not even aware. It is fear greed. Think of
the decisions, and the way you do this is look
at your actions post analysis. Print out that will. You
can take screenshots if you want. What I used to
do is print down still do it, print out all
my trades, winners losers, two folders, a winning folder, losing folder.
(39:10):
That's it. The trade either winds will lose if it's
a wash. If it made money, it's going to win folder.
If it loses money, it's a wash goes lose folder.
See the perent of binary win lose. That's it. So
we're in a situation where, oh, okay, how do I
(39:31):
find patterns? Look at the actions? What actions did I take?
I bought this, did I chase it? Did I buy
it too early? And then over time. If you do
that and you review those trades at the end of
the month, end of the quarter, end of the year,
you'll start detecting patterns in yourself that otherwise you wouldn't
be aware of. Super powerful and write down on the
(39:54):
chart when you print it out or you take a screenshot,
the reasons why you bought it, the reasons why you
sold it. Lots of times you'll see you, quote unquote
broke your own rules. Not you specifically, I don't know you.
I'm just speaking me generally, humans, right, creatures. So I
think that's all the time we have for today. I
hope this is helpful. I want to wish everybody are
(40:14):
very happy and healthy Thanksgiving and holiday season. Thank you
very much for being here. This is the one and
only Investor's Edge.
Speaker 1 (40:22):
This has been Investor's Edge with Gary Kult's moom on
biz Talk. To listen to past episodes or to get
in contact with Gary, go to garyka dot com. That's
garyka dot com.
Popular Podcasts
On Purpose with Jay Shetty
I’m Jay Shetty host of On Purpose the worlds #1 Mental Health podcast and I’m so grateful you found us. I started this podcast 5 years ago to invite you into conversations and workshops that are designed to help make you happier, healthier and more healed. I believe that when you (yes you) feel seen, heard and understood you’re able to deal with relationship struggles, work challenges and life’s ups and downs with more ease and grace. I interview experts, celebrities, thought leaders and athletes so that we can grow our mindset, build better habits and uncover a side of them we’ve never seen before. New episodes every Monday and Friday. Your support means the world to me and I don’t take it for granted — click the follow button and leave a review to help us spread the love with On Purpose. I can’t wait for you to listen to your first or 500th episode!
Dateline NBC
Current and classic episodes, featuring compelling true-crime mysteries, powerful documentaries and in-depth investigations. Follow now to get the latest episodes of Dateline NBC completely free, or subscribe to Dateline Premium for ad-free listening and exclusive bonus content: DatelinePremium.com
Stuff You Should Know
If you've ever wanted to know about champagne, satanism, the Stonewall Uprising, chaos theory, LSD, El Nino, true crime and Rosa Parks, then look no further. Josh and Chuck have you covered.