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Steve Strazza

Hot Corner Insider Weekly Report - August 2, 2024

August 2, 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 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!

Our first setup of the day is a $48.4B home construction company, Lennar Corporation $LEN.

len

In April, director Amy Banse filed a Form 4 revealing a purchase worth $247,275.

The stock has been grinding higher steadily since it broke out of a monster base in 2020. Right now, buyers are digesting the latest gains as price coils in a tight consolidation at the 261.8% extension.

We're betting that over time, LEN will continue its ascent in the direction of the underlying trend.

As long as we’re above 170, we want to be long LEN with a target of 273 over the next 6-12 months.

Here’s The Sherwin-Williams Company $SHW:

shw

In January 2023, the chairman and CEO John G. Morikis revealed a purchase of half a million dollars.

SHW has been carving out a big basing pattern for the past two years.

Price is pressing against the upper bounds of the range now as buyers work on absorbing the overhead supply at this resistance level.

If and when we get a decisive breakout above 354, we can be long with a target of 452 over the next 3-6 months.

Last but not least, we have a $3.3B integrated office real estate investment trust. This is Highwoods Properties Inc $HIW:

hiw

In February, chairman of the board Carlos E Evans reported a purchase of 20,000 shares, equivalent to $473,400.

The stock has built a constructive reversal pattern for the past 18-months. Price is currently pressing against the 38.2% retracement of the 2021-2023 decline, giving  us a logical place to define our risk and get long.

We want to be buyers, but only on strength above 31 with a target of 49 over the coming 3-6 months.

Have a great weekend, everyone!

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