During volatile trading days with conflicting signals, investors need “some sort of totem that can help point us in the right direction,” said CNBC’s Jim Cramer.
The “Mad Money” host suggests that investors look out for large insider buying.
While insiders sell for all kinds of reasons, they only buy for one reason: “to make money,” Cramer said.
Five IBM board members recently bought shares in the company, including CEO Ginni Rometty who purchased over $3 million worth of stock. Rometty’s purchase, her first on the open market, signals “a real commitment,” Cramer said.
Read Cramer’s guide to insider buying here.