10x MORE BREAKOUTS THAN BREAKDOWNS" - Market Internals Strongly Bullish

 

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

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

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📅 Wednesday, November 26, 2025 (Adam Sarhan Guest Host)

"10x MORE BREAKOUTS THAN BREAKDOWNS" - Market Internals Strongly Bullish

Market Action

• Dow: Up 315 (47,427)
• S&P: Up 46 (6,812)
• NASDAQ: Up 190 (23,214)
• Market selling into close last few minutes - "No big deal"
• Russell 2000 and Mid-Caps: Already positive on the month (extremely impressive)
• S&P and NASDAQ: Almost positive on the month

Adam's Summary: "The environment remains very, really just remains strong. Bears had every chance in the world to send the market lower and they didn't. Instead, we rallied."

Leading Sectors 🟢

1. Healthcare/Biotech - "Lots breaking out"
2. Crypto - Bitcoin recovering
3. Broad Market - Continuing Friday/Tuesday strength

Market Internals (BreakoutsAndSetups.com Real-Time Data) 📊

Breakouts vs Breakdowns:

• 52 breakouts vs 6 breakdowns = Almost 10x more breakouts!
• Adam: "That tells me a lot. The market is speaking. Are you listening?"

Movers (Stocks Moving 3%+):

• 382 movers UP vs 68 movers DOWN
• Tuesday had 866 movers up vs 66 movers down (market rallied rest of day after Adam saw this)
• Monday had 631 movers up vs 102 movers down

New Highs vs New Lows:

• 149 stocks at 52-week highs, 59 at all-time highs
• 5 stocks at 52-week lows, 2 at all-time lows
• Adam: "Last week when market was falling apart, it was exact opposite. Movers down, hundreds. Movers up, single digits or low double digits."

Gap Ups (17 stocks):

• ASML, Robinhood (Bitcoin recovering), Teva Pharmaceuticals, Harmony Gold, Urban Outfitters

Gap Downs (7 stocks):

• Workday - earnings
• Zscaler (ZS) - Down $23 (~20%) after hours on earnings, "broke below 200 today"
• Ambarella (AMBA) - gap down
• PagerDuty (PD) - Down 23%

Leading Stocks 🚀

• Apple - Broke out Tuesday but closed below breakout point (moved to "below breakout" list)
• Healthcare/biotech names continuing

Lagging Stocks 📉

• NVIDIA - Down 15% from 52-week high (3-4 weeks ago) - "That's correction territory"
• Palantir - Down 20% from 52-week high (with this week's rally)
• Zscaler - Down $23 after hours on earnings

Adam's Key Teachings 💡

Position Sizing Lesson:

• If 10% position, 10% stop = only 1% portfolio risk
• $100K portfolio, 1% risk = $1,000 max loss
• "Gives me semblance of control. Allows me to plan."
• "Any one stock not going to destroy my portfolio because it's sized correctly in advance"

Math of Losses:

• Down 50% requires 100% gain to break even
• Down 25% requires 33% gain to break even
• Down 10% requires 11% gain to break even
• "Math is not linear. Set me free in a very big way."

Trading Psychology - Use Percents Not Dollars:

• "Money messes with my head. We're all emotionally attached to money."
• "Doctors can't operate on immediate family because of emotional attachment"
• "Hide the money part. No emotion to a percent. I don't know anybody emotionally attached to 4% or 22%."
• "I know everybody emotionally attached to $2,000, $20,000, $2 million"
• Book: "Psychological Analysis" - was #1 on Amazon for 3 months

Post-Trade Analysis System:

• Print out all trades
• Two folders: Winners and Losers (wash = loser)
• Write on chart: reasons for entry, reasons for exit
• Review end of month/quarter/year
• "You'll start detecting patterns in yourself you wouldn't be aware of"

The Hanger Example:

• "Nobody emotionally attached to a hanger in closet"
• "Can make right decision based on merits without emotional cloud"
• Same needs to apply to trading decisions

BreakoutsAndSetups.com Tool Features

• Updates in real time throughout trading day
• Tracks: Breakouts, Breakdowns, Movers up/down, Gap ups/downs, 52-week highs/lows, All-time highs/lows, Setups (tight, broad, large cap, small cap)
• History section - tracks how far above pivot point stocks are
• Free: First 3 breakouts daily, rest behind $39/month paywall
• Website: BreakoutsAndSetups.com
• Email: info@marketterminal.com

Market Outlook 🎯

Environment Assessment: "We're in a bull market. Markets are strong. We had every chance in the world to fall last week. Instead, we rallied, and we rallied hard this week, which is very impressive."

Month-End Setup:

• Small caps already up on month
• Big caps almost up on month
• "December tends to be a strong period as well"
• Friday last trading day of November (half day, Black Friday)

Adam's Relay Race Theory: "Maybe the time is being passed off as 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 open to anything."

Moving Average Framework:

• "Sometimes you just have to zoom out and watch these moving averages"
• Back above 50-day, back above 21-day (depending on index)