As you already know, a big part of my job is to monitor the insiders of publicly traded companies, both individually and as a whole.
Doing so has allowed me to turn out opportunity after opportunity to make those huge gains in just 1 move. If you’ve followed any of our recommendations, whether it’s been to short Apple, buy gold, or anything else, you know that feeling of getting a windfall of cash from doing virtually nothing.
With that in mind, I’ve just picked up on a drastic 180-degree turn by the insiders, and it may be the last hint you get before something big happens…
In discussion around the office, much of the conversation has been about how this current market seems to just want to go up. Bad news doesn’t hurt it, and good news pushes it higher every time.
Insiders had been echoing that sentiment for the past several weeks.
Based on the ratio of insider purchases to insider sales of stock in their respective companies, where a reading of 12 sales to 1 purchase or lower is bullish and a reading of 20 sales to 1 purchase is bearish, the insiders were basically yelling, “Higher! Higher!” last week.
But that’s a far cry from what their actions are yelling now…
While last week gave us an insider transaction ratio of 5 to 1, just yesterday that same reading moved to 31 to 1!
That tells me 2 things:
1. Insiders have obviously just picked up on something that’s making them very bearish as a whole.
2. Volatility is picking up at a very high rate.
So insiders are bailing in droves for the short term, and if you’re still pouring all of your retirement savings into vulnerable stocks (NOT commodities, currencies, etc.), you need to heed their warning.
BUT…
This also gives us a fantastic chance at yet another big-money windfall from doing next to nothing!
Here’s where that chance begins: The Volatility Index, or VIX.
As the name gives away, the VIX tracks the amount of volatility entering the stock market.
And while the VIX itself isn’t tradable, the VIXY is.
The VIXY is a short-term futures ETF attached to the VIX, and it’s at extreme lows right now – below $8 a share.
And any bump in volatility, which the insiders appear to be bracing for, would send that price shooting up to the $11 mark, as it recently has on a couple of occasions.
That would be an easy gain of around 40% for you! So a simple $1,000 bet would turn into a $400 payday (quite possibly overnight)…
Get ready for VIXY to pop.
