An update for would-be Tax Loss / ‘January Effect’ buyers…
As you may have noticed in the portfolio section of NFTRH 267, REMX was added for a diversified play on the REE sector. This is as much a tax loss and would-be ‘January effect’ play as anything else. Also, if the economy remains strong (ISM just out at a strong 57.3%) I would expect certain strategic commodities to eventually gain a bid in the first half of 2014.
As for individual stocks, the speculative REE has a chart that I would look for in a ‘January effect’ play, with a hard downtrend but MACD turning up from over sold levels (by RSI). STO above 20 implies further upside could be in store.
I no sooner looked at it this morning and it started to get jumpy. I am going to give it some time after this update is sent and hopefully it will settle down. I’d like to buy at some point today and may chase it a little if I have to. But a better course for anyone interested in items like this may be to put it on radar along with other tax loss / Jan. effect plays we may uncover going forward and selectively pluck them up on weakness in the first half of December.