This Is the Best Signal on the Market
Karim Rahemtulla|February 15, 2022
Note From Amanda: Our good friend Karim Rahemtulla, the co-founder of Monument Traders Alliance, has uncovered a unique way to ignore the media spin… and Wall Street head fakes… and follow the money! He looks for specific types of buys from key executives, directors and other insiders to see what they are doing with their own money. Tracking these buys could have led to gains of as much as 2,250% in just two weeks!
For more details on how he follows the money to big gains, check out his strategy here while you can (limited time ONLY).
Below, he shares just how to make this strategy work for you.
Strap yourself in, because today I’m going to show you the best buy signal on the market.
The crazy thing is…
Most investors don’t have any idea how to identify it.
Today, I’ll show you how.
There’s just one thing to keep in mind as you read further…
This method is about following the money… to big gains.
Let’s look at a recent play on Bed Bath & Beyond (BBBY), for example…
On January 7, my insider cluster buying detector picked up on some big trading action on Bed Bath & Beyond.
We used this as an opportunity to follow the money.
I leveraged this info to make a play just a couple of days later.
I called for a diagonal spread trade, betting that insiders were onto something and that the stock was going to climb.
Boy, was I right…
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.
It’s 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.
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 in the Insider Matrix. 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.
Ready to see how it works? Click here.
Karim RahemtullaHead Fundamental Technician | Monument Traders Alliance
Karim Rahemtulla is the Co-Founder of and Head Fundamental Tactician for Monument Traders Alliance. He has more than 30 years of experience in options trading and international markets. He’s also the author of the best-selling book Where in the World Should I Invest? Using volatility and proprietary probability modeling as his guideposts, he makes investments where risk and reward are defined ahead of time. Karim is all about lowering risk while enhancing returns using strategies such as LEAPS trading, spread trading, put selling and, of course, following insider cluster buying – the lead indicator for his Insider Matrix service.