Yes, here is how it works and why it is at the end of the year:
You cannot sell a stock at a loss and claim that loss on your taxes if you buy back in within a 30 days. That is a "wash sale" by definition.
SO, when a stock like CNBX is down, we all want to sell before Dec. 31st to capture the loss on that year's taxes before Dec. 31st. (You are allowed to write stock losses off as long as they are not in an IRA, 401K, etc. They are just invested in a normal account).
So, we all want to capture our loss on our taxes at the end of the year.
However, most of us time it knowing that people sell off the most around the end of November/beginning of December, so the 30 days will be up (Wash Sale Rule negated) and we can buy back in as soon as new years hits, (ie, the new tax year has started) because that is how people do it, and we want to get back in before people buy and the price jumps.
To give you an example: I sold shares at 20 cents and bought back in at 12 cents just over a month later, almost doubling my share count of the shares I sold without investing any money. Those shares have now jumped from the 12 cents that I bought back in at to around 38 cents, tripling my buy in price. So, I basically doubled my share count by selling at 20 and buying back in at 12, and then that 12 more than tripled. In effect, I doubled my shares, and then tripled their value.
On an account holding $ 1,000 on November 30th, you would be holding around $ 6,000 now, based on this model. And the beauty is, it happens every 12 months because of how the calendar works and how tax law works.
I am not giving advise. I am not a professional. I am simply sharing my understanding of how "Wash Sales", tax law, etc work.
It dropped because people expected others to get out, it rose because people expected others to get back in. Some refer to it as FOMO, Fear Of Missing Out. But in reality, it is the calendar and tax law.
Take care, Jim
