Many of the traders in the forum would be aware that the tax loss selling season is about to hit.
Some stocks coming in to this time zone tend to get heavy volume which can appear to be a bottom and look as though they might rally ,only to get belted by the tax sellers down to their year lows and beyond.
Those traders that get caught in the middle often get left holding the baby, with the buyers side disapearing and the sellers forced to tax sell down to the patient investor who can pick up some good tax loss losers in the last 1 or 2 days of the month at prices that can be good short and long term value.
The week coming however has tended to be the week that those traders lose their undies.
Looking through the ASX there is plenty to keep an eye on in the next 10 days that are likely to see tax selling which could attract daytraders and could fall further prior to 30/6 I have come up with...
BIG HIGH 8.5c Current 3c BKV HIGH 54c Current 9c BDL HIGH 2.00 Awaitng re lsiting CAG HIgh 20c Current 4.7c ISC HIGH 15 Current 3.3c KAZ HIGH 1.54 Current 27c NCP HIGH 1986 Current 1127 ORC HIGh 12c Current 3.2c OTS HIGH 9c Current 1.4c SOH HIGH 110 current 63 VNA HIGH 12c current 2c
The stocks above have obviously fallen for a whole host of reasons and are not reccomendations, however were any of them to have shareholders that are desperate for tax losses ,which could include the instos on the bigger caps mentioned herein ,an opportunity might exist if they were to say fall 10% below a year low on a big single trade
Speak to your own brokers and do your own ressearch,this is just a food for thought opinion ,and warning from past experience in the week coming up where ive been caught before on stocks trading near their lows 2-3 weeks from year end.
