“While stocks were getting hammered into a brief correction last week, driving the S&P 500 Index to erase some $5 trillion in equity value, corporate insiders returned to buy the dip. A gauge of insider sentiment from the Washington Service shows that with two more weeks to go in March, the ratio of buyers to sellers rose to 0.46, up from 0.31 in January. That puts the measure on pace for the highest monthly reading since June and back near its historical average,” as reported by Bloomberg.
Here's where insiders are putting their money where their mouths are.
American Express (AXP)
On March 7, director Michael Angelakis bought a total of $998,593 worth of American Express shares at a price of $269.89 per share. Technically, AXP does look interesting. After dropping from about $320 to $254, the oversold stock is starting to pivot higher again. It’s also seeing a reversal on RSI, MACD and Williams’ %R.
From its current price of $270.83, we’d like to see AXP retest $290 initially.
Asana (ASAN)
Oversold, Asana (ASAN) are also seeing insider buying.
President, CEO and Chair of Asana, Dustin Moskovitz just paid about $9.55 million for 675,000 shares of the beaten-down stock.
The stock dropped on weak earnings and guidance. Both of which missed estimates. Plus, there was an announcement that Moskovitz would retire. However, with all of the negativity now priced into the stock, ASAN does look attractive at current prices.
Many of you will have come to know the M.O.C. order we use to exit as standing for Murder On Close rather than Market On Close. There are times when it is better to exit prior to the close. Here are things to look for: Three o’clock (15:00) Chicago time is when the stock market closes in New York. If, at this time, the S&P 500 futures are moving in the direction of your trade, and particularly if they are at or near the HIGH or LOW of the day, it will generally be in your favor to exit M.O.C. A strong move day like that generally causes longer-term traders to cover their positions near the close. This tends to move the market even stronger in the direction it has been going. It is common for the S&P’s to add 50 or more points to their range after the stock market closes on days like those. If, however, the market is moving in the OPPOSITE direction as your trade, whether you are profitable or not at the time, it is probably wise to exit immediately, or at least before the close. Position squaring by many traders can cause the close to be somewhat erratic and cost you quite a few dollars in the process.
Quick recap – If the market is moving in the same direction as your trade at 3PM Chicago time, especially if it’s near the HIGH or LOW of the day, stay with the M.O.C. order. If the market is moving in the OPPOSITE direction as your trade, whether it is currently profitable or not, you should exit BEFORE the close, and perhaps immediately.
After having been down four weeks in a row, the Stock Market has finally moved higher. Not much mind you, but higher just the same.
On Friday, March 14 SPY closed at $562.81. This past Friday, March 21, SPY closed at $563.98. On Friday, March 14 QQQ closed at $479.66. This past Friday, March 21, QQQ closed at $480.84. On Friday, March 14 IWM closed at $202.89. This past Friday, March 21, IWM closed at $203.79.
More importantly than Prices moving higher, all of these stocks have Technical Analysis Indicators which are starting to turn up.
Understand I’m not saying we’ve reached the Bottom. This is a News Driven Market, anything is possible. But I feel we’ve worked our way past a market of continual Lower Lows & Lower Highs.
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