Last week’s market action was not a headline-driven bounce. It was a rotation.
Capital moved deliberately into a small number of themes tied to real demand cycles, durable cash flows, and forward visibility. What makes this week different is not just where money went, but who was already positioned there.
Across several of the strongest rotation themes, insiders accumulated shares weeks before price broke out. In multiple cases, price has now moved sharply in confirmation.
This report highlights where rotation and insider behavior are aligned, where momentum is unsupported, and how to position next.
Primary rotation themes this week:
Breakthrough biotech and precision medicine
Real assets and metallurgical supply chains
Defense and government IT services
AI infrastructure and industrial buildout
Theme 1: Breakthrough Biotech and Precision Medicine
Rotation Status: Strong
Insider Alignment: Very Strong and Early
This was not a speculative biotech bounce. It was a repricing.
Capital rotated into select healthcare innovation names where pipelines, timelines, and balance sheets offered asymmetric upside. The clearest insider confirmation within this theme is ALMS.
Anchor Name: ALMS (Alumis Inc.)
In early December 2025, insiders accumulated aggressively while price was still depressed.
Multiple open-market cash purchases by Director Srinivas Akkaraju
Over $2 million deployed across several transactions
Largest disclosed buy included 96,000 shares around $7.55
Since insiders began buying in early December, ALMS has surged more than 100 percent, including a sharp acceleration last week.
This is the cleanest insider sequence we track:
Insider accumulation first
Institutional interest follows
Price reprices violently
Additional healthcare names participating in the rotation include HTFL and QDEL, though insider confirmation is strongest in ALMS.
What to do next:
Treat ALMS as a leader, not a chase. Look for consolidation or controlled pullbacks.
Continue monitoring insider activity across adjacent autoimmune and precision medicine names for early confirmation.
Theme 2: Real Assets and Metallurgical Supply Chains
Rotation Status: Strong
Insider Alignment: Exceptional Conviction
The market rotated into real assets with pricing power and supply constraints. The insider activity here was not subtle.
Anchor Name: AMR (Alpha Metallurgical Resources)
In early to mid December 2025, insiders deployed career-level capital.
Director Kenneth Courtis purchased approximately 37,000 shares across multiple transactions
Total capital deployed was roughly $6.7 million
On December 15, a 10 percent owner and director added another ~$7.3 million
Total insider capital deployed exceeded $14 million, all via open-market cash purchases.
Since those buys, AMR has rallied roughly 20 percent, confirming that insiders positioned ahead of the rotation.
This activity aligns with confidence in metallurgical coal demand, shipment guidance, and pricing durability.
What to do next:
Favor pullbacks over breakouts.
Monitor insider behavior across adjacent materials and industrial commodity names for similar conviction signals.
Theme 3: Defense and Government IT Services
Rotation Status: Improving
Insider Alignment: Coordinated Executive Confirmation
This rotation is about visibility, not speculation.
Capital rotated into defense and government IT services where backlog, contracts, and funding cycles remain intact regardless of macro noise.
Anchor Name: SAIC (Science Applications International)
Insider behavior here is notable for its coordination, not size.
December 16, 2025:
CFO, General Counsel, and Interim CEO all bought shares on the open market
December 31, 2025:
Additional EVP purchase confirmed
These were modest in dollar terms but important in signal quality. Multiple senior executives buying together matters.
Since mid December, SAIC has gained approximately 12 to 13 percent, confirming insider timing.
This is classic institutional alignment behavior in defense services names.
What to do next:
Favor continuation setups and shallow pullbacks.
Use insider coordination as a confirmation signal, not a trigger by itself.
Theme 4: AI Infrastructure and Industrial Buildout
Rotation Status: Ongoing
Insider Alignment: Mixed but Improving
The AI trade did not disappear. It narrowed.
Capital rotated away from speculative applications and toward physical infrastructure, manufacturing enablement, and data center buildout.
Key names participating include LRCX, ENTG, BE, and PSN.
Insider activity here is not as concentrated as in biotech or materials, but institutional sponsorship remains strong. This is a theme driven more by capex cycles than insider conviction.
What to do next:
Favor high-quality leaders on pullbacks.
Avoid chasing volatility-dependent names without clear support.
Secondary Rotation: Consumer Resilience
Insider Alignment: Weak
Representative Name: VAC (Marriott Vacations Worldwide)
Consumer discretionary names participated selectively, but insider confirmation is limited.
No meaningful insider buying during early December
One small January 2026 EVP purchase
Prior director buys occurred in November
Since late November, VAC has gained roughly 10 to 15 percent, but insider activity does not reinforce the move.
Interpretation: Momentum-driven, not insider-led.
What to do next:
Treat as tactical exposure only.
Do not overweight without stronger insider confirmation.
Rotation Summary Table
Highest conviction rotation with insider alignment:
ALMS, AMR, SAICRotation with weak or no insider confirmation:
VAC, select consumer and speculative momentum names
Forward Outlook
This was a confirmation week.
Capital rotated into sectors tied to real demand, and in several cases insiders were already positioned before price moved. That alignment is rare and meaningful.
Going forward, our focus remains simple:
Follow capital
Confirm with insiders
Avoid momentum that lacks sponsorship
As new rotations develop, insider behavior will remain a core confirmation tool in separating durable trends from short-lived trades.
What to Do After the Initial Rotation
Many of the stocks driving this week’s rotation have already made their first move.
That does not mean the opportunity is gone. Leaders often provide secondary entries on pullbacks or consolidations. But it does mean the risk profile has changed. Chasing strength after a sharp repricing is rarely where the best returns are made.
What I care about now is what has not moved yet.
Inside the same sectors attracting capital, there are several names where insiders have already committed real money, but price has not meaningfully separated from those purchases. These are the situations I focus on when I am looking for the next leg, not the last one.
That is where the edge still exists.
These are not crowded trades.
They are not obvious to the broader market.
And they are not available to non-subscribers.
Below is my subscriber-only watch list, built specifically around early insider alignment within the strongest rotation themes. These are the names I am actively monitoring for confirmation, and the pool from which any future alerts will come.