Retail Investors Keep Buying as Insiders Keep Selling

Thanks to inflation, a penny stock today is considered any stock trading under $5 per share. That’s also the price where institutional investors are cut off from owning a stock – it’s just too low a price and it’s too easy for big money to buy shares.

But that isn’t stopping retail investors from buying sub-$5 stocks – and now, true penny stocks trading under $1.00.

Today, a whopping 47% of all market volume is in sub-$1 stocks:

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As mentioned in this morning’s Swan Dive, Regencell Bioscience started the year as a penny stock, trading as low as $0.09, split-adjusted.

It’s now been the best market performer year-to-date – even without any positive corporate developments to point out – just pure retail buying. (We also strongly urged you not to buy the stock.)

In the meantime, company insiders are now picking up the pace of their sales:

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Of course, insiders have many reasons to sell, from putting a kid through college, paying for a messy divorce – or just the good old-fashioned opinion that their shares are overvalued.

These two trends suggest that retail investors are getting ebullient, while the insiders who know their company’s value inside and out are hitting the cash register.

~ Addison

Good News for Stocks

50-year Wall Street veteran, Marc Chaikin is stepping forward to share why history gives him 90% historical confidence that stocks will end 2025 up. However, he also has bad news: the same data also tells him the REAL market crash will likely arrive in 2026. Click here to see the month and day he estimates it will begin.

P.S.: Looking for small-cap companies that are driven by fundamentals and not just retail sentiment?

Consider joining our Portfolio Director Andrew Packer at the Rule Investment Symposium in Boca Raton on July 7-11, 2025. Click here to attend and meet your future cutting-edge resource investments face-to-face.

And for paid-up members: Be sure to join us for Grey Swan Live! tomorrow, June 19, 2025. It’ll be Juneteenth, and we’ll be discussing international investing, value investing, and how to find massive stock winners over time with Chris Mayer. Chris is always a good conversation.

As always, your reader feedback is welcome: feedback@greyswanfraternity.com (We read all emails. Thanks in advance for your contribution.)

But that isn’t stopping retail investors from buying sub-$5 stocks – and now, true penny stocks trading under $1.00.

Today, a whopping 47% of all market volume is in sub-$1 stocks:

Turn Your Images On

As mentioned in this morning’s Swan Dive, Regencell Bioscience started the year as a penny stock, trading as low as $0.09, split-adjusted.

In the meantime, company insiders are now picking up the pace of their sales:

Turn Your Images On

Of course, insiders have many reasons to sell, from putting a kid through college, paying for a messy divorce – or just the good old-fashioned opinion that their shares are overvalued.

These two trends suggest that retail investors are getting ebullient, while the insiders who know their company’s value inside and out are hitting the cash register.

~ Addison

Good News for Stocks

P.S.: Looking for small-cap companies that are driven by fundamentals and not just retail sentiment?

As always, your reader feedback is welcome: feedback@greyswanfraternity.com (We read all emails. Thanks in advance for your contribution.)

The stock market “rebalancing” is a polite way to put it. Energy and health care are getting a healthy boost. But tech hardware and software makers are still getting dressed down and have been asked to report to the principal’s office.

The great rotation underway has triggered a series of “Hindenburg Omens.” Five have occurred in recent weeks.

The S&P 500 has traded in a 3.7% range over the past two months — less than half the 20-year median of 8.6%. One of the tightest ranges in modern history.

In trader parlance, the indexes are “flat,” a setup that often materializes before a sell-off at the top after a multi-year bull market.

Goldman Sachs told its own traders to be aware that institutional trading activity resembles a VIX reading near 35. Rather than a reading of 20, where the VIX has been trading over that same 2-month period.

The U.S. software ETF, IGV, tested its April 2025 lows last week and trades roughly 35% below its peak. The “SaaS-pocalypse” in software companies reflects the fear of Citrini’s 2028 scenario happening in real time. That divergence now exceeds the spread seen at the peak of the Great Financial Crisis.

Under the surface, the “great rotation” we wrote about last week is threatening to widen.

Despite its overly-educated 40-million-plus population, on a GDP per capita basis Canada is null. Collectively, the Great White North would rank as America’s second-lowest state, coming in above Mississippi, but below Alabama.

SpaceX is the most valuable private startup in history — and if its success continues, it might become the most valuable public company in history.

After all, as Musk famously said in 2023, “I have never lost money for those who invest in me and I am not starting now.”

For investors, SpaceX has been a wild, joyful ride — and now the journey continues!

The great rotation underway has triggered a series of “Hindenburg Omens.” Five have occurred in recent weeks.

The S&P 500 has traded in a 3.7% range over the past two months — less than half the 20-year median of 8.6%. One of the tightest ranges in modern history.

In trader parlance, the indexes are “flat,” a setup that often materializes before a sell-off at the top after a multi-year bull market.

Under the surface, the “great rotation” we wrote about last week is threatening to widen.

SpaceX is the most valuable private startup in history — and if its success continues, it might become the most valuable public company in history.

After all, as Musk famously said in 2023, “I have never lost money for those who invest in me and I am not starting now.”

For investors, SpaceX has been a wild, joyful ride — and now the journey continues!