The Only Market Signal You’ll Ever Need…
Strap yourself in, because today I’m going to show you the best buying signal on the market.
The crazy thing is…
Most investors don’t have any idea how to identify it.
Today, I’ll show you how.
There’s just one thing to keep in mind as you read further…
This method is about following the money… to big gains.
Let’s look at a recent play on Bed Bath & Beyond (Nasdaq: BBBY), for example…
On January 7, my insider cluster buying detector picked up on some big trading action on Bed Bath & Beyond.
We used this as an opportunity to follow the money.
I leveraged this info to make a play just a couple of days later.
I called for a diagonal spread trade, betting that insiders were onto something and that the stock was going to climb.
Boy, was I right…
Usually, insider plays take weeks or months to play out. This one played out in a matter of 12 trading days!
This shows you the power of tracking insider cluster buying.
As a refresher, I truly believe insider buying is the best signal in the market.
However, you must be able to read between the lines…
Below is a checklist you should follow.
- Do not buy when just one insider buys. That’s not a confirmed indication of anything.
- Note the buy-to-holdings ratio. For example, if an insider holds 20 million shares and adds 200,000 shares… that means nothing for the purposes of a short-term trade. Insider buying by a major shareholder is not a confirmed sign, either, as it could be an indication of a major holder adding to a position.
- Check the news. If the insider or insiders are buying after a bad earnings call and even worse forward guidance, it could be years before the bet pays off.
- Look for cluster buying where more than two insiders are buying at varying prices – preferably higher and higher ones.
- Look for four or five insiders buying over a long period of time. The best indication is when most of the insiders are officers – they have more at stake with their compensation.
- Don’t pay attention to insider selling, as it is not a proven indicator. It can be the result of many factors, such as tax or estate planning, diversifying, or buying a new house. But insider buying usually means one thing: There is good news ahead.
Action Plan:
That’s it in a nutshell.
Look, the truth is this is the very best signal in the market…
Following insider cluster buying is incredibly powerful when you know what to look for.
I make trade recommendations based on insider buying in REAL TIME with the Insider Matrix.
Who else can boast a 92% win rate on insider trade recommendations? NO ONE!
With this new service, I’ll alert you when I see an insider buying signal and give you the exact trade to best profit from it.
No need to sit at your computer and scan through webpages all day.
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Monday Market Minutes:
- We’re seeing very good insider buying on Uber Technologies (NYSE: UBER). The stock needs one more insider purchase to qualify as a cluster buy, and it’s already one of my favorite reopening plays. Tracking.
- The Energy Select Sector SPDR Fund (NYSE: XLE) and the Direxion Daily Gold Miners Index Bull 2X Shares ETF (NYSE: NUGT) popped hard late in the day on Friday on Russia fears. The tension between Russia and Ukraine is exactly why we’ve been trading these assets in The War Room.
- The War Room is known for trading, but it is also a great place for income strategies. Karim just revealed a 5.3% yielder that would be an ideal position to keep adding to as rates rise. Get that ticker symbol when you join The War Room today!
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