Q: After being beaten down for several weeks, Lumine and Topicus shares jumped, Today (Tuesday), by 15% and 7%, respectively. Volume was not huge, but price action appeared to be good.
Do you think that this could be a sign of year end tax loss selling abating ? What would confirm this thesis ?
In theory, should it also help Constellation Software stock regain some strength ?
Both LMN and TOI are still down over 50% from their highs, but at least, it looks like a positive sign, as long as it does not reverse course.
Thank You
Do you think that this could be a sign of year end tax loss selling abating ? What would confirm this thesis ?
In theory, should it also help Constellation Software stock regain some strength ?
Both LMN and TOI are still down over 50% from their highs, but at least, it looks like a positive sign, as long as it does not reverse course.
Thank You
5i Research Answer:
It is a positive sign; there is really no way to confirm the thesis other than looking at trading volume. Typically, a bottom is formed when there is a 'shake out' of nervous holders and volume spikes. As noted, volume was not particularly noteworthy on either. But if we can see 'ok' volume and these prices sustained or built upon, it will be generally a positive sign. Tax loss selling typically peaks between now and the first week of December, but again it is really only volume that provides any clues to this. Some more insider buying of course would also be positive.