Stocks are having a tough time these past few weeks. Selling pressure is not just accelerating; it’s spreading.
Even the leaders aren’t providing shelter from this latest storm…
A lot of the commodity stocks we’ve been focusing on for long exposure in recent months are experiencing significant volatility and are now back below our risk levels.
We want to be patient and wait for the dust to settle for most of these trades.
While this is the case for the majority of stocks right now, there are always pockets of strength.
The most obvious among them right now is energy. The resilience from energy continues to impress us.
Today, we’re going to outline long ideas in a popular exploration & production name as well as an international bank stock.
The market has become increasingly volatile as selling pressure spreads to the strongest stocks.
As bullish opportunities become more scarce, we’ve had to become more selective in terms of our long exposure.
This is because we’re trend followers. We want to be involved in uptrends, and as more and more uptrends come under pressure, we have fewer options. It’s as simple as that.
But when it comes to corporate insiders and activists, they actually become more active when stocks are under pressure. They love buying weakness.
So while there are fewer opportunities for trend followers like us, there is a growing list of opportunities for bargain-hunters like them.
As such, insiders have been very active in recent weeks as stocks continue to slide. But they don’t only buy downtrends. There has been some activity in names showing impressive relative strength as well.
Let’s talk about a handful of leading stocks that insiders have shown interest in recently.
One of the overarching themes since we launched the Inside Scoop and began writing about The Hot List each day has been the relentless interest in commodity stocks.
Coincidentally, these same stocks have exhibited incredible relative strength over this time period. It’s already been a few months, but we’re not seeing any signs of this trend slowing down.
We discussed a lot of these names during last week’s live strategy session. Click here to watch the replay and to download the accompanying chartbook.
And be sure to join us tomorrow at 1:00 p.m. ET for this week’s live strategy session.
Today, we’re going to talk about some new long setups that we’re getting involved with.