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Steve Strazza

Hot Corner Insider Weekly Report - July 8, 2024

July 8, 2024

From the Desk of Steve Strazza @Sstrazza and Alfonso Depablos @AlfCharts

Welcome to the Hot Corner Insider Weekly Report!

As you know, we spend a lot of time tracking insider activity to come up with this universe.

But that’s only half the battle!

Once we identify the names insiders are targeting, we overlay our expert technical analysis to see if the market agrees with their actions.

While we track some of the most powerful and well-informed market participants… we aren’t just going to follow them blindly into their trades.

We want to see that the insider activity is confirmed by the trend before we get involved. 

When we can check both of these boxes, we identify asymmetric risk/reward setups, and then jump in and ride these trends higher alongside the smart money.

You can rewatch our weekly strategy session here.

Let’s get started!

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Our first setup of the day is the $161B industrial bellwether, Caterpillar $CAT:

cat

Director David MacLennan has begun to build a position, making purchases in February and May of this year totaling $281,874.

CAT has been stair-stepping higher and consolidating constructively along the way since a huge base-breakout in 2020.

This year, price exceeded a key extension level that now became support with our next target near 450.

We only want to be long if we're above 312. Below that level things get hairy.

Next, we have a $10.8B investment bank, Jefferies Financial Group $JEF:

jef

In July 2022, director Thomas Wade Jones revealed an acquisition of 40,000 shares, equivalent to $1.2 million.

JEF is knocking on the door to new all-time highs.

Buyers are working on absorbing all the overhead supply at the upper bounds of a decade-long base.

If we’re above 49.50, we want to own it, with a target of 74.50 over the coming 3-6 months.

Next, we have the $252B software company, Adobe $ADBE:

adbe

Last month, Sen. Tuberville reported an acquisition worth between $15,000 and $50,000.

The path of least resistance is higher for ADBE if it holds the 536 level. We're targeting 699 in the coming 1-3 months.

Last but not least, we have Louisiana-Pacific Corp $LPX:

lpx

Tuberville disclosed a periodic transaction report showing a purchase between $100,000 and $250,000 in October last year.

After emerging higher from a three-year base, price has pulled back to the breakout level.

Now, all that former resistance has turned into a logical level of support.

If we’re above 80, we want to be long LPX with a target of 99 over the next 2-4 months. 

However, any breach below 80 would mean we’re early or wrong, and we do not want to be involved.

Have a great week everyone!

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