This Sneaky Senator’s Insider Trade Isn’t the Most Corrupt Part of This Story.

When a senator who sits on the Health Committee makes a big bet on a small, home-state medical devices company that just happens to get mucho moolah from the federal government, and then that stock goes up more than 40% in the weeks after said senator’s big bet, it’s the opinion of this mostly humble columnist that there’s some real shady stuff going on.

But it gets worse.

Earlier this month — November 8, to be exact — Sen. Tina Smith (D-Minn.) purchased up to $250,000 in shares of Tactile Systems Technology (TCMD). TCMD shares had been on a real losing streak in 2023, down more than 60% from its 52-week high of $26.11. The price was down nearly another third, to $10.27 from $12.61, in the 48 hours before Smith made her big buy.

Buy the dip, of course. What’s remarkable is just how quickly TCMD recovered over the next three weeks — up 43% since the Minnesota senator plunked down her big bucks on a Minnesota company in an industry that Smith’s committee oversees.

That’s just one trade by one senator.

Financial analyst Quiver Quantitative called it “the most suspicious congressional stock trade I’ve seen in months.”

In May of last year, Quiver built “a trading bot that buys stocks that are being bought by politicians.” In a flat market, Quiver’s congressional bot’s fund is up 20% in just 18 months.

The sliminess is bipartisan. Here’s one example of how Quiver’s bot has performed by following the Tesla trades of one Democrat and two Republicans.

How’s your portfolio doing?

“It’s worth noting,” QQ reminds investors, “that despite the outperformance of the Congress Buys Strategy, it may still be held back by weak disclosure regulations.” Congresscritters, under the 2012 STOCK Act signed by President Barack Obama, have 45 days to disclose their stock transactions — but the penalty for late disclosures is all of $200.

So, yes, you could build a portfolio based on what people like Sen. Smith buy and sell, but you still wouldn’t do as well as they do because you’ll be up to 45 days behind their trades. Or longer if they decide to pony up the $200 for late disclosures.

But it still gets worse.

Quiver claims to have traced 7,912 STOCK Act violations, but “only a few have been investigated.” If any of those investigations have actually gone anywhere, it would be news to me. But Congress writes the laws governing Congress, so what would you expect?

That’s why, as far as I’m concerned, the most scandalous part of any of this is the mainstream media’s absolute silence on the matter.

As Bill Whittle put it to Right Angle viewers years ago, the press is supposed to act as a healthy society’s antibodies — gathering in the bloodstream at the site of any corruption to reveal and destroy it. And yet when a sitting member of the Senate Health Committee, whose “husband is an investor with a focus on medical industry stocks,” is making a killing on a volatile health company’s shares, it results in precisely zero stories in the mainstream media.

That’s despite Quiver’s revelations getting more than two million views on Twitter/X — the preferred social media platform of American journalists.

We know what Congress gets out of all this, so what’s the media’s payout?