Late December is the time to identify stocks that are low-relative-strength, low-priced stocks, and held mainly by individual investors, because these are the best candidates, in my experience, for the January Effect.
Basically, I'm looking for the signatures of December tax-loss selling by individuals. The last few years, however, there were not many of these, especially compared to earlier years, as shown in my subject post for the January Effect 2005 thread.
This year looks a little more promising. I've been doing screens, using Reuter's free Powerscreener Lite, which can be found here:
investor.reuters.com
I'll post my picks after I buy them, which will be sometime between Christmas and New Year's Day. |
