Hot Corner Insider Weekly Report - October 10, 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.
Our only setup of the day is Snowflake Inc $SNOW:
In March, CEO Frank Slootman made headlines with a bold $5 million stock purchase, as reported in a Form 4 filing.
Shortly after, Snowflake director and Sutter Hill Ventures managing director Michael L. Speiser made an even bigger purchase, investing nearly $10 million to acquire 76,200 shares.
As you can see in the chart, after a significant drawdown off its highs from 2021, SNOW is finding its footing and rebounding off a critical support level.
We couldn’t think of a better place and time for SNOW to catch up to the pack.
With a bullish momentum divergence in place (as measured by the 14-period RSI), evidence continues to build in favor of a bottom.
Over the past two days, price is confirming this, with SNOW rallying 9% as it breaks out of a 5-week coil.
We think buying right here right now would make a lot of sense. We can still get in at a far more favorable price than the two insiders did earlier this year.
Imagine buying a stock at a better price than the CEO himself as soon as the trend has shifted in your favor? That’s what we’re doing here.
These opportunities don’t come around too often so we wanted to be as clear as day about this one. It’s a special situation.
We’re long SNOW above 111 with a target of 238 over the next 3-6 months. After that, we’re looking at those old all-time highs around 400.
But, let’s get the reversal in the books first and take it from there.
