End-of-calendar-year trading strategy/psychology
Question for the more experienced traders on this board, especially Omni, Chipped, Hacked:
Do you consider it a plausible theory that in an UP market, such as this one, with so many stocks priced at a much higher level than they were earlier in the year, that larger share holders of any given stock may be more likely to decide to hold onto their equities for an extra day or two longer than they would have normally in order to avoid paying one extra percentage of capital gains on another big winning trade -- and thinking others may do the same thing -- hold tightly -- which will add to the price of the holding.
In other words, am I the only knucklehead gripping my USVO shares tightly while expecting similar larger holders (50,000-plus shares) will hang on also and ride these already-up stocks into 2004.
Which is also saying that my theory is you will see little or no across the board tax loss sells by traders as you normally see in a down market.
It occurs to me now as I look at my above theory in print that it probably applies more to stocks that are at their 52-week highs.
