Legal But Unfair #2 (Insider Trades with Good Setups)
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One of the best trades in any market or any signal for any investor is when an insider at a company buys a large amount of the stock. This usually signals that they are bullish on what the company is doing and many times is very predictive of stock price.
For example, let’s look at TSLA 0.00%↑ . For the last year, Tesla saw no insider buying and only insider selling!
and here is the chart over the last year:
Another great example is META 0.00%↑ and Mark Zuckerberg. He sold META 0.00%↑ shares almost every single day of 2021, and 2022 proved to be a horrible year for the stock.
So today I went through the SEC Form 4 filings and found the best setups where there is insider buying and there is insider transactions to see if we can find some good stocks.
The first stock is CABO 0.00%↑. Not only did it get a nice bounce off the $52 week lows, there is >$10M worth of insider buying at these levels as it has a bottoming pennant pattern.
Another thing is the sector which is cable and if you remember from my other article about Michael Burry (which you can read by pressing below):
Michael Burry is investing in some cable stocks and TV telecommunications stocks, so if he’s right, then this sector should move soon.
The second stock is CRSR 0.00%↑ or Corsair Gaming. One thing I've noticed is an increase in the gaming sector recently and with the holiday season coming up this may move. Strong support at $15 which you can use as a stop loss. Massive insider buying from different insiders that amount to >$100 million!
The third stock is one with a lot of insider selling and that’s WMT 0.00%↑ aka Walmart which doesn't look like a bad short opportunity here at $152. Very overbought and has filled that volume gap from May. No recent buying from insiders and over $1.5 BILLION in selling!
The next two stocks (one is a low float and the other is a speculative biotech play) are only for paid members of my Substack. Please subscribe if you would like to access them along with all my other trade ideas throughout the week.