📊 Market Sector Tracker - Gary Kaltbaum's "Investor's Edge"

Tracking leading/lagging sectors, top stocks, and market positioning

📅 Tuesday, October 28, 2025

"IS NVIDIA GOING TO OWN THE WORLD?" - 20+ Deals, Terrible Breadth

Market Action

NASDAQ: +190 points
NASDAQ 100: +190 points
Dow: +161 points
Breadth: TERRIBLE - 1,782 up vs 2,709 down on NASDAQ
Sold off into the close

NVIDIA Dominance Day: NVIDIA held global tech conference in D.C., announced 20+ major partnerships including Eli Lilly AI supercomputers, J&J robotics, Palantir, CrowdStrike, ServiceNow, Oracle DOE supercomputer, Nokia $1B investment, and meeting with President Trump tomorrow. Stock +$10 to over $200.

Leading Sectors 🟢

AI Semiconductors - Specifically AI-related names (most other semis down)
Data Storage - Still working but energy infrastructure stocks topping out
Select Big Tech - Top 7 = 60% of NASDAQ 100

Lagging Sectors 🔴

Gary's "Middle Screen" breakdown of 600 stocks shows bearish phases across:

Insurance - "Worsening every day"
Cruise Lines - Bearish phase
Waste Management - "Being wasted right now"
Hotels - Bearish phase
Airlines - Bearish phase
Retail/Apparel - "Ton in bearish phase"
Auto Dealers - Bearish phase
Food/Beverage/Tobacco/Household Products/Alcohol - Bearish phase
Restaurants - "In bear market for a long while"
Payroll Stocks (ADP, Paychex) - Bear markets
Transports - Bearish
Housing - Bearish
Big Biotech - Bearish (except Regeneron today)
Managed Care - "Big bear market"
Exchanges (CME, CBOE) - Weak

Leading Stocks 🚀

NVIDIA - +$10 to $200+ (20+ partnership announcements at GTC)
Regeneron - +$64 to $654 (still down 40% from Aug '24 high of $1,211)
Wayfair - +$20 on great earnings growth

Lagging Stocks 📉

Zebra Tech - -$36 on earnings
Commvault - -$28 to $145 on earnings
Abercrombie & Fitch - $165 → $74 in 10 months
Cava Group - $172 (Nov '24) → $62 now
United Rentals - "Gagging"
Lululemon - "Absolutely destroyed"

Gary's Positioning 💰

Avoiding ALL bearish areas listed above
Not stating buys, but clearly positioned in AI/semis/Big Tech
Watching earnings reactions closely this monster week
"You better be listening to us on what to avoid. More now. More now."

Crash/Correction Outlook 🎯

"We're not saying the same thing is going to happen. We're just telling you that some of those characteristics of narrowness in the market are at hand. They're not looking to show. They're here." Gary explicitly warns that 1999-style concentration is present - institutions sold everything and bought select stocks that got "over-owned, over-loved, over-priced" before the cycle ended. "If it stays narrow and the good stuff tops out, you'll be hearing from us."

Key Observations 💡

NVIDIA = The Market: "Is NVIDIA going to be involved with every S&P 500 company?" 20+ announcements in one day
600-Stock Breakdown: Gary's middle screen shows massive swaths of market in bearish phases while indices up
Breadth Disaster: "Advanced declines on NASDAQ were worse and worse throughout the whole day" - 1,782 up vs 2,709 down
Value Isn't Happening: "If you had 10-20 best stocks in restaurants, insurance, transports, retail, autos - you're getting smoked"
Earnings Wild Card: "Good will be bad, bad will be good" - Regeneron destroyed for months, gaps up $64 today
Jay Powell Tomorrow: Fed Chair speaking Wednesday

BamaTrades

Tuesday, October 28, 2025

IS NVIDIA GOING TO OWN THE WORLD? - 20+ Deals