RE:RE:RE:RE:RE:RE:SPWill see if we get a rally here into the close,,,opportunity is knocking,,!!
donmayne wrote: Estreet:
Furthermore the wash sale rule will restrict tax loss sellers in Canada and the US from repurchasing the same stock for 30 days in order to declare the tax losses. In other words, when the markets open in January, there will be no further tax loss selling. That will reduce downward pressure, if any, caused by tax loss selling.
At the end of the 30 day period, on January 29th, Canadian tax loss sellers can repurchase VMD on the TSX. On January 31, US tax loss sellers can repurchase VMD on NASDAQ. There could be upward pressure then. Of course, other external factors (eg Covid developments) may have influenced the price/buying decisions in the interim.
I do suspect there has been considerable tax loss selling on VMD in the US where trading was heavy on Nasdaq in May (average 800,000+ per day) and June (average 320,000+ per day) at higher prices to make tax loss selling advantageous.
There is a stampede effect once tax loss selling starts. Stocks that have a decline will tend to have that decline exageratted. The smart tax loss sellers started on December 1 and achieved a higher price. They waited the necessary 30 days to buy back and would be buyers today and tomorrow.
The price recovery this morning and then again at the end of today despite heavy selling from 1 pm to 2 pm and again from 3 pm to 3:15 pm on Nasdaq.
Recent selling would also be Institutions that are window dressing their portfolios for the end of quarter. Sell the losers to other institutions and buy the losers from other institutions.