The stock market has been relatively flat lately, but here's someone who's built a trading bot that tracks the stocks being bought and sold by politicians. The creator, called Quiver Quantitative, claims it's "up 20% since it launched in May 2022."
Here are some of the recent trades it's tracked:
- On October 17th of 2022, the strategy entered a position in Lockheed Martin, $LMT. This came after purchases of up to $115K of $LMT by Representative Scott Franklin on September 12th, which were disclosed on October 11th. The day after the strategy entered this position, Lockheed announced better-than-expected quarterly revenue due to increased demand for its F-35 fighter jets.
- On August 22nd of 2022, the strategy entered a position in ChannelAdvisor, $ECOM. This came after a string of $ECOM purchases by Senator Tommy Tuberville from March 8th to July 14th worth up to $665K. Less than a month later, it was announced that ChannelAdvisor would be acquired by CommerceHub.The stock jumped over 50% and Tuberville sold the next day.The strategy generated a 48% return off of its $ECOM position.
- On May 15th of this year, the strategy entered a position in Tesla, $TSLA.This came after a handful of congressional purchases of Tesla stock, including buys by Senator Tommy Tuberville, Representative Josh Gottheimer, and Representative Dan Newhouse.The strategy exited this position on June 20th, following sales of Tesla stock by Senator Tommy Tuberville, Representative Josh Gottheimer, and Representative Michael Garcia.In the 36 days that this position was open, $TSLA rose over 64%
With results this good, you would almost think politicians are privy to inside information.