You know that I watch insider buying like a hawk. I look at every filing of insiders buying their own shares, and I’m constantly searching for patterns or clues.

The best clue is when three or more insiders (two of which must be officers) are buying substantial amounts of stock on the open market. This is called cluster buying.

The open-market trades indicate urgency. The insiders want to buy the shares NOW! And that means they feel the stock is cheap and the future is bright.

They’re not always right, but they’re right way more often than they’re wrong.

In my experience, insiders are right about 80% of the time. And heck… even if it were 60% of the time, that would still beat every Wall Street analyst!

Before you ask – I don’t pay attention to insiders selling.

Why? Well, insiders sell for all types of reasons – buying a house, buying a car, portfolio diversification, estate planning… the list is endless.

But they usually buy for only ONE reason: They think the shares are going higher.

And in one sector, insiders are flashing GREEN as they go all-in.

Over 100 insiders have bought shares in the banking/financial sector over the past two weeks.

Say what?

Isn’t that sector in the news because of multiple bank failures?

Yes. In fact, at least three banks have failed worldwide.

These insiders have been buying thousands of shares – collectively worth millions of dollars – every single day since the first bank (Silicon Valley Bank) reported its woes.

Most of the buying has been in community banks, smaller regional banks and business development companies (which provide a source of alternative funding when banks are too scared to lend or restricted from lending).

It’d be impossible to list all the companies experiencing this insider buying. But there is a way to profit from it: Buy into a regional bank ETF. In this case, the Invesco KBW Regional Banking ETF (KBWR) is the way to go.

The fund seeks to track the investment results – before fees and expenses – of the KBW Nasdaq Regional Banking Index (the “underlying index”). It generally will invest at least 90% of its total assets in the securities that comprise the underlying index.

The underlying index is a modified market capitalization-weighted index comprised of companies primarily engaged in U.S. regional banking activities, as determined by the index provider.

It is designed to track the performance of U.S. regional banking and thrift companies that are publicly traded in the U.S.

YOUR ACTION PLAN

With this one investment, you can profit from a recovery in the sector, which I think will happen before the end of the year. The ETF is trading near its 52-week lows right now, which makes this a very opportune time!

If you want to follow every insider buy I track, you’ll want to check out Insider Matrix. I use state-of-the-art technology to track insider buys in real time, which allows me to get ahead of the competition. Right now the win rate on these trades is 71%.

Click here to discover Insider Matrix.