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Strong insider buying suggests a 15% rebounds from here
Personally I think current prices maybe too low and rsi of sp500 qqq dji so low, lowered pe make stocks prices very attractive/ 7 8 weeks sale and prices diving downsrend maybe extremely long.
My brother of do not believe in the rally and he waits for more uptrends before buying (he maybe missing out rebounds if any left) Of course they can go 15% lowered also
The marketwatch article cites buying in 3 stocks. HD, MS & COIN. Of those 3, HD would be the only one which might be of interest, given its defensive nature. -- But the insider buys I see on it are not that big, not what I would call "conviction buys".
The size of the buys on MS and COIN are certainly significant, and maybe they rocket up from here, but I've no interest in buying into those businesses.
And insider buys -- even high-value 'conviction buys' -- can be horribly wrong. As a recent "Exhibit A", consider ASAN - a s/w startup by a Facebook founder. It IPO'd last year, and the founder has been buying hand-over-fist -- all the way down. I am talking about hundreds of millions of $$ in open market purchases.
He is still buying in recently. Technically, the chart looks like it may have found support. If I were disposed to buy based on insider buying, it would be ASAN, simply based on the tremendous, relentless buying the founder has been doing. it IPO's ~ $25 and is now ~ $20 -- after trading as high as $140. Frankly, I don't have the stomach for those kind of moves anymore. Maybe it will go up eventually. But being this early -- and buying in at much higher prices -- is functionally no different than being wrong, even if it eventually goes up.
I used to give a lot more credence to insider buys, but look if -- and I did say "IF" -- the market craters further, these 3 will be pulled along with it. so much money is indexed, that its really hard for individual issues to resist the gravitational movement of indexes.
@Edmond has a good point. Insider buying has been touted by various and sundry as a positive indicator, but money flows into equity mutual funds (including index versions) will more reliably predict the direction of the markets. One manager of a big fund can move a stock faster than any board member of a given company buying shares for his/her grandchild’s college fund.
Comments
The size of the buys on MS and COIN are certainly significant, and maybe they rocket up from here, but I've no interest in buying into those businesses.
And insider buys -- even high-value 'conviction buys' -- can be horribly wrong. As a recent "Exhibit A", consider ASAN - a s/w startup by a Facebook founder. It IPO'd last year, and the founder has been buying hand-over-fist -- all the way down. I am talking about hundreds of millions of $$ in open market purchases.
He is still buying in recently. Technically, the chart looks like it may have found support. If I were disposed to buy based on insider buying, it would be ASAN, simply based on the tremendous, relentless buying the founder has been doing. it IPO's ~ $25 and is now ~ $20 -- after trading as high as $140. Frankly, I don't have the stomach for those kind of moves anymore. Maybe it will go up eventually. But being this early -- and buying in at much higher prices -- is functionally no different than being wrong, even if it eventually goes up.
I used to give a lot more credence to insider buys, but look if -- and I did say "IF" -- the market craters further, these 3 will be pulled along with it. so much money is indexed, that its really hard for individual issues to resist the gravitational movement of indexes.