Super Micro Computer, Inc. (SMCI)

SMCY uses a synthetic long with call sales, capturing limited gains and nearly the full downside of SMCI, underperforming in any market. See why SMCY ETF is a sell.

As the U.S. market navigates a period of mixed performance, with technology shares rebounding while the Dow Jones Industrial Average faces declines, investors are keenly observing insider activity as a potential indicator of confidence in growth stocks. In this environment, companies with high insider ownership can be particularly appealing, reflecting strong internal belief in their future prospects despite broader market volatility.

The tech stock selloff flipped into rally mode on Friday as Wall Street finally stepped in to buy the dip. The Nasdaq Composite rallied 0.8%. The Dow was down 108 points, or 0.2%, after dropping more than 500 points earlier in the day.

Stock Market Today: The Dow Jones index dropped 400 points Friday. But Nvidia and Palantir recovered well off session lows.

The Nasdaq Composite clawed back to positive territory as a handful of key AI stocks like Nvidia rallied off their lows. The S&P 500 was down 0.2%, though only 147 stocks in the index were in positive territory. Nvidia turned positive and was up 0.5% in recent trading.

The third quarter earnings season has been mostly positive, with most of the reports in the rearview mirror.

In the wake of a sharp downturn in major U.S. stock indexes, fueled by a significant drop in technology shares and broader economic uncertainties, investors are increasingly seeking stability and potential growth through companies with strong insider ownership. In this environment, stocks with high insider ownership can offer a compelling advantage, as insiders' vested interests often align closely with shareholder value creation.