Insider Trading

If insiders are buying a stock when it's at its 52-week high, "that is a clear sign that you want in."

Sometimes insider buying is "meaningless" and, on its own, an "insufficient" reason to buy a stock. "A lot of times you'll catch insiders buying their stock because they want to give the impression of confidence, to create an illusion that they're doing better than they in fact are,"

However, "it is pretty powerful endorsement when the insiders buy a whole lot of stock," especially when the buying is occurring at the stock's high. "These guys are not going to buy at the high unless they have some unshakeable conviction about their companies." Therefore, insider buying at the high tells investors that there will not be a pullback, "and there's nothing more bullish than that,"

Insider buying, coupled with a heavy short position, also equals a buy, "This is an explosive combination, and more often than not, it means there's going to be a short squeeze," meaning that the shorts will start buying to cover themselves.