My Favorite Catalyst for This Week’s Pick

This past week, our Catalyst Cash-Outs members had the chance to ring the register twice.

Two of our Catalyst Cash-Outs plays hit their 25% profit target.

Those trades were Vertiv (VRT) and Citigroup (C).

Now, we have one of my favorite catalysts coming up for this week’s trade.

I’m talking about insider buying.

Just to be clear, insider buying is not to be confused with insider trading, which is illegal.

Insider buying is trading based on public information, since the insiders are required by law to disclose their filings.

Why I like insider buying

Insider buying is one of the most proven ways to make consistent winning trades in any market.

In fact, I’ve been following insider buys for years, and in my experience, I’d say insider-based trades win between 70 to 80% of the time.

Here’s what I look for before considering a trade based on insider buying action.

Cluster buying and its role as a catalyst

One of the most eye-catching forms of insider buying is what I call “cluster buying.”

Cluster buying is when a group of insiders all buy shares of the company’s stock.

One example of a cluster buy could be three vice presidents, the CEO and CFO all buying shares of their company’s stock.

Once I identify a cluster buy, I can do more research to find out why it happened.

For example, if a company comes out with good news and then a cluster buy happens, then I have a strong foundation for a potential trade.

Remember… insiders might sell a stock for a million different reasons, but they only buy if they believe the stock will go up.

The truth is… insiders know way more about a company than any analyst does. And that’s why it’s more crucial to watch what they’re doing than what any news analyst is saying.

Another factor to consider is that insiders are not allowed to sell the stock for at least six months. So by default, it gives you a chance at a long-term play, which I prefer over short-term because it gives me more time to be right.



Cluster buying is one of the biggest signs a stock could be going up, and yesterday I went live to talk about a trading opportunity based on a cluster buy from a travel company in Catalyst Cash-Outs.

Click here to unlock that pick.


Fun Fact Friday

The first Memorial Day: James A. Garfield, an Ohio congressman who would later become the 20th American president, gave a speech honoring fallen Civil War soldiers at Arlington National Cemetery. Afterwards, thousands of people decorated the graves of the fallen, which gave it its original name of “Decoration Day.”