Trading breakdown stocks with insider buying signals
The guest argued that combining a list of technically breaking down stocks with real-time insider buying data from SEC Edgar filings creates high-probability, short-term long trade setups.
The argument
The guest explained that when a stock on his breakdown list shows sudden insider buying and subsequently moves off the list, he targets a 20% return using options spreads. He exits the trade immediately if the stock falls back onto the breakdown list.
The thesis, stress-tested
✓ What validates it
- ✓The Trade Desk (TTD) sustaining its post-insider buy upward momentum
- ✓New insider buying filings appearing on other breakdown names like Campbell Soup or Brown-Forman
▸ Risks discussed
- ▸Insiders may fail to call the absolute bottom, as noted with KKR and Ares
- ▸Stocks can continue to break down further, triggering tight stop-losses
Hear it yourself
"CBRE is on that list, Ares Management. And we're seeing a a massive amount of insider buying on a lot of different equities. The moment that that that that stock falls off that momentum list, that negative momentum list, and there's insider buying, look at a stock like MSCI."
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