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. 1) Do not buy when just one insider buys. That's not a confirmed indication of anything. 2) 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. 3) 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. 4) Look for cluster buying where more than two insiders are buying at varying prices - preferably higher and higher ones. 5) 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. 6) 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. YOUR ACTION PLANThat'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. Ready to see how it works? Click here. |
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