"And if so many stocks are below those moving averages, then it is likely most investors who own those stocks are
looking to sell into rallies. How many times have you bought a stock, watched it drop, and said a little prayer, "Please
get me back to even"? But the stock keeps going down. So eventually you can't take the pain anymore and you sell;
you eventually throw in the towel and say, "Hit the bid and get me out." That's the sort of selling that's missing from
this market; it's what cleans out the sellers. Currently, we are still in the phase of praying to get even, which is why
the rallies are so stinko."
Eric,
This is not consistant with the next paragraph.
"As we begin to approach year-end, it occurs to me that I haven't heard anyone chatting about tax-loss selling. It
has been a lousy year for most stocks, similar to 1994 in many respects, and the tax-loss selling that took place in
November of that year was difficult for the market at best. For that reason, I suspect some sort of tax-loss selling
awaits this market between now and year-end."
If one does not have gains as mentioned above, why the need to sell for a tax loss?
Glenn |
