Last tax-selling day of year. How my temporary losses can be your gains. In retrospect I should have waited until today to pick up my quality value dogs because they're all down today to ridiculous levels. Sellers desperate for some tax credit are dumping. Here is the list and no doubt all will bounce back quickly with the january effect starting tomorrow.
ANF, BEBE, CPU, KMAG, MXTR, EGRP, SCH, BNBN, WDC, XRX all at their recent bottoms today.
I also expect CPQ (CMGI owner), UIS, CORL, HSAC and COMS to rebound.
In retrospect Rande was right. Shuold have played high-fliers until today then switched into the dogs. Wasted three weeks of potential trading profits. However, the January effect is a very real thing.
Early january should see an inflow of money into the market, some profit-taking and tax-loss dog buying on the cheap. Retailers like ANF and BEBE should go up 50-75% by March if history is any guide. |
