1st thing we have to determine is if there actually is forced selling re index removal and tax selling. (I'm not quite sure of timing surrounding index rejig - was hoping this would come out in discussion but this has proved to be non-existant.) With AXN I am going to analyse volume leading up to 30/6 and price movements. IF AXN fits my model of increasing volume and decreasing price I will buy late last week of June if volume decreases and hold for quick exit. As for price I really would not know but if the trading volume / price movements do not fit my model will not buy.
With CPU I have not got a view as too much market noise surrounds this stock. Am currently going through all index removals and insolating a small group of stock's that under normal circumstances would appeal to insto's and will interrogate as per above. Insto's have no problem with selling at a loss and buying back the next week if they think the stock has a future, PLEASE NOTE they could also do the exact opposite of what we are talking about and buy heavily to window dress year end results. CSL and MAY could fall into with category as are widely held and have potential to hurt fund performance. So must fit model leading up to 30/6.
