Recently, I shared with you a long-term bottoming indicator in the markets…
And how we can break it out by sector.
Right now, healthcare is looking pretty hot:
Quick summary: This is the buy/sell ratio, and it measures the amount of insider buying happening across the market or within sectors.
As you can see:
A ton of insiders are parking serious cash into their companies.
Given the year biotech’s had, it’s worth a look:
That’s a 60% drawdown from high to low.
Odds are, there are some deals in there.
That’s why we’re playing a small biotech stock down over 90% from its highs.
But what made us pick one specific company over another?
Do we have some special knowledge about the company?
No… but I think I know who does.
Take a look at this chart:
That first arrow is where this company’s CFO — the person who knows all the financials — dumped around half a million $$$ in shares.
Right near the top of the market. Not bad.
And now, they’re buying back in FAR lower than where they sold.
As the legendary Peter Lynch said:
"Insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise."
If you want to learn how we find companies like these and how to grab this ticker for yourself…