FREDAlert!
Volume 7, Issue 5
December 7, 2015
We have been waiting to issue a tax loss bounce/January Effect list, and have had a lot of requests for this list. We have had so many that this strategy may not be effective this year but nonetheless, here goes!
There are so many candidates due to the narrow market this year. We have picked stocks that represent several industries (NOT just energy!). We have the following rules this year. We show a buy limit price, and we would execute at that price or below immediately, for ½ position. We would then execute a second ½ position at or below the buy limit price on the OPEN December 31, if the stock is trading below the buy limit, whatever the price. The reason for this is that these stocks may drop steadily into the end of the year and if so we want to average the price as cheap as possible. The January effect means that the stocks should rally in January (NOT December) and the classic trade is to buy them on the last day of the year. Since this is often anticipated I will try at least some in early December. Per normal rules – all of these are closed out on the last trading day of January 2016. You can see the table for buy limits and price targets, below, as well as daily and weekly charts of these names.
