I call this the Horror Movie Sequel Setup because it reminds me of what happens in popular slasher flicks.
Like just when you think that Freddy Kruger, Jason Vorhees, or Michael Myers are dead and the world is safe once again…
There’s a little hint at the end of the movie that tells you “not so fast Jack”.
It’s a teaser that a sequel is on the way and soon… the villain will be back and badder than ever before.
Something similar happens to stocks that look “uninvestable” on a piece of rotten news.
If you see this signal in good markets… it’s a sign you might get a nice 10 - 20% bump from the bottom.
But when you see it in cratering markets like we’ve got now…
It can be a sign of a big KABOOM!
A 3 or 4 digit dizzying thrill ride to heights unknown.
And I think we just might have one forming right under our noses.
Take a look at this chart:
It’s had a classic breakdown off of not so good earnings numbers…
… a pattern you’ll see dozens of times a year in stocks from all different industries…
In good markets and in bad.
But it’s what happens next that you should pay attention to…
What you’re looking at is a couple of high-rollers on the inside swooping in to buy up the free fall.
Now, what’s even more juicy about this “inside baseball” bet…
Is that this is the first big buy all year long.
Again, always a good omen in any market… but in the rotten climate we’ve had this year…
It’s like finding a giant gold nugget jutting out of a rock face.
Telling you “there’s gold in them thar hills!”
Not convinced? Check this out, it gets even better…
The first big buy you can see in the chart above is from a director…
He sunk just over a quarter million into the stock at just under $10.
Now, this director is a college dean who’s serving on the board in an advisory capacity…
He’s not some corporate hotshot with deep pockets looking to gamble…
This is real size and real money for a pretty “Average Joe” type of guy.
And that… shows conviction!
The second buy comes from the CFO, who joined the company back in late July.
Now, when a new c-suite joins a company there’s usually a chance for them to get at least some of their compensation in the form of preferred shares.
It’s a structure that favors the business because they pay less out of pocket and the executive gets more upside if things go well.
Well, the CFO in question didn’t take that deal or buy in… until the $117K he shelled out of his own pocket recently.
So, when you see this kind of action… into a stock that’s tumbled on bad earnings…
It’s the Horror Sequel Setup in action…
Think of it like Jason’s machete plunging out of the water at the end of Friday The 13th…
A sequel is coming and this time… it’s PERSONAL!
If you want to know what name we’re seeing this Horror Sequel Setup in…
Along with a proven way to play this and other “insider setups” to make steady profits in any market climate:
Original Post Can be Found Here