Two Stocks for a July Bounce

By Murray Dawes, Saturday, 29 June 2024

Tax-loss selling season is over. Now for the bounce

In today’s Closing Bell, tax-loss selling season in June saw stocks under pressure. Now that it’s over it is time to go hunting for stocks that could bounce back from depressed levels. Murray shows you two to consider.

Rejoice, for tax-loss selling is over and the chance of a bounce back from beaten up stocks is upon us.

In today’s Closing Bell video, I show you two stocks that I think look ripe for some upside if a rally gets going.

One is a $2.6bn gold stock and the other is a $480m tech stock that is a serious punt.

Tax-loss selling season is obviously more pronounced during weak market conditions.

After two years of pain in the mid and small-cap sectors it makes sense that many people would chuck in the towel on their dud positions as tax time approached.

The S&P/ASX Emerging Companies Index is down close to 7% from the high reached last month.

Inflation figures released during the week spooked the market initially and interest rate sensitive sectors copped a shellacking.

But I was surprised by the strength of the rally late in the week which took prices back to where they were before the inflation figures were released.

Is that the start of the bounce back after tax loss selling season?

I kick off today’s Closing Bell by outlining the clear lines in the sand we can use as we move forward.

A monthly close in the S&P/ASX 200 below 7,500 (currently 7,800) will make me wary a correction is upon us. But until that happens I will give the market the benefit of the doubt and remain positioned for more upside.

After four months of watching this market grind sideways I have fingers crossed a substantial move isn’t far off.

Check out the two possible bounce back belters in the video above and let’s hope the buyers return now that June is in the rear view mirror.

Regards,

Murray Dawes Signature

Murray Dawes,
Editor, Retirement Trader and Fat Tail Microcaps

All advice is general advice and has not taken into account your personal circumstances.

Please seek independent financial advice regarding your own situation, or if in doubt about the suitability of an investment.

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Murray Dawes is our resident expert trader and portfolio manager. He is a former Sydney Futures Exchange floor trader who went on to design custom trading systems and strategies for ultra-wealthy clients (including one of Australia’s richest families). Today, his mission is to help ordinary Aussie investors make profitable investments, while expertly managing risk.

He uses his proprietary system for his more conversative and longer-term-focused service Retirement Trader…and then applies the same system to the ultra-speculative end of the Australian market in Fat Tail Microcaps (this service is strictly limited and via invitation only).

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All advice is general in nature and has not taken into account your personal circumstances. Please seek independent financial advice regarding your own situation, or if in doubt about the suitability of an investment.

The value of any investment and the income derived from it can go down as well as up. Never invest more than you can afford to lose and keep in mind the ultimate risk is that you can lose whatever you’ve invested. While useful for detecting patterns, the past is not a guide to future performance. Some figures contained in our reports are forecasts and may not be a reliable indicator of future results. Any actual or potential gains in these reports may not include taxes, brokerage commissions, or associated fees.