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Steve Strazza

Hot Corner Insider Weekly Report - October 21, 2024

October 21, 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 first setup of the day is FB Financial Corp $FBK.

fbk

On Friday, former director James Ayers bought 4,000 shares, equivalent to $201,340.

We mentioned this one earlier this year as it was resolving higher from a short term bottom.

Fast forward to today, and FBK hit our target and is printing fresh all-time highs.

Now, the stock looks poised to break out of a 3-year basing formation and embark on a new leg up.

Our line in the sand lies at 49.50 since it represents the peak of the prior cycle. We’re above that level, then the path of least resistance will be higher.

We’re long against 49.50 with a 3-6 month target of 65.

Last but not least, we have a $2B company that operates and licenses restaurants in the United States and Canada. Here’s Cheesecake Factory $CAKE:

cake

In December 2022, director Edie A. Ames revealed a purchase of $129,015.

CAKE has been carving out a bearish-to-bullish reversal pattern for roughly three years. 

This is what a classic accumulation pattern looks like in the early stages of a trend reversal.

As you can see, buyers are attempting to take out the upper bounds of this range, which coincides with the 38.2% retracement, making it a logical place to define risk.

We want to buy CAKE above 41, with a target of 66 over the coming 3-6 months.

Have a good week everyone!

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