June is the month for tax loss selling.

There will be some stocks that have trended down most of this financial year. Coming into June 30th some of these same stocks may make a sudden dip over the next two weeks as investors quit the stock and crystallise their loss. Often these same stocks will then make a burst upwards after July 1. A couple of stocks that may be in this position could be GUD, Ausdrill, and Aust Hospital Care. I may add more to this list as we get closer to June 30th.

Quick trades are possible sometimes if the mathematics can be identified on the chart. An interesting book to study further about this tax loss selling effect is a book called The Incredible January Effect, by Robert A Haugen.

A little feed back has been filtering through to me from this months classes to that effect also. Some of the online brokers have been hard to contact; the suggestion being investors are active at present crystallising losses on some shares. Keep an eye out.