There are bound to be a lot of long term holders that will sell stocks like CER in the next week to realise tax losses before June 30. I have some other stocks that I will sell for that reason. With the tax office saying they are looking closely at wash sales it means that it can not be a sell and buy straight back.This will mean some selling that may not be immediately reinvested as was the case in the past. So expect some heavy selling.
Because the same senario is being played out in other stocks it may still end up with a gain in the buyer/seller balance if the sellers of other stocks decide to buy CER because to buy back the stock they sold would be declared a wash sale. So there may be heavy buying.
So look for volatility until June 30th. The SP could go either way. (The buying and selling may not be on the same day.)
CER Price at posting:
9.9¢ Sentiment: LT Buy Disclosure: Held
