Whale signals
Seven patterns Kereon detects in disclosed trading, each citing the filings behind it.
Inputs
- Insider cluster. Two or more insiders buying the same company on the open market within 30 days, $100,000 or more in total.
- Institutional accumulation. Six or more reported institutional position changes in a company over 180 days, at least 60% of them additions.
- Political activity. Two or more politicians disclosing purchases (or sales) of the same company within 45 days.
- Executive conviction. An open-market purchase of $500,000 or more in the last 45 days by a chief executive, financial or operating officer, president, chairman or founder.
- Divergence. Insiders and institutions pointing opposite ways over 120 days: net readings at least 40 points apart, with $250,000 or more of insider open-market activity and six or more institutional changes.
- Consensus. A whale score of 70 or more with at least three groups reporting and none of them below 55.
- Rotation. One manager's biggest exit against its biggest new or increased position in the same 13F period.
How to read it
Each signal has a strength from 0 to 1. Lists take turns between kinds, because a divergence's strength is not comparable to a cluster's.
How to use it
Starting points for research: open a signal to see the transactions it cites.
Limitations
Disclosures arrive late — Form 4 within two business days, 13Fs and congressional reports within 45 days — so a signal describes what was done, not what is being done.
In Kereon
Whales · Signals. Re-detected from the store of filings; the detectors read only what has been filed.
Also called: signals, insider cluster, cluster buying, accumulation, divergence, consensus, rotation, executive conviction.