Entering the sell zone
Tax Loss Trades Latest - Time Is Running Out
At the end of the tax year in North America may investors sell their dogs in order to realise losses which they can offset against gains elsewhere. Selling climaxes as the year ends. Come January you usually get a relief rally.
This has opened up what is generally known as the tax loss trade. The idea is to buy as the selling climaxes, then sell into the relief rally which comes in the new year.
Before Christmas, I listed nine beaten-up small cap resource stocks in Canada that were likely candidates: they would get oversold and then have a bounce.
We projected December 20-21 as the climax of the selling, and so it was for almost every company on the list.
I left some stink bids in the market. Some got filled, some didn’t. All is outlined here.
Today I update you on progress. We are coming into the sell zone.