With Trump talking down the U.S. dollar at every turn, the TSX Venture has been rallying along with gold and commodity prices. While the Trump effect is one thing, the TSX Venture is performing as it always does at this time of year. You would know that if you had read our weekly volume from late-December titled An Amazing Track Record. In that newsletter we notified all of our subscribers about a seasonal trading strategy that continues to stand the test of time. We wrote that,
“There’s a little-known seasonal trading opportunity only presented by the TSX Venture that is about to hit the calendar…”
In the past month, the world’s largest junior resource exchange has only declined 7 times in the past 23 trading days. And two of those days it only dropped 0.10% and 0.03%.
The Weekly Volume titled An Amazing Track Record explained just how timely the trade could be. Below is an excerpt:
“TSX Venture Traders Should Be Greedy Right Now
This one historical fact should make every one of us optimistic about the TSX Venture precisely at this time of year. We are four days away from the best annual trading opportunity the Venture provides. For thirteen years in a row, it has been a shoo-in bet to make on this micro-cap index. And most investors aren’t even paying attention to this little-known fact. Let me share it with you:
* Over the last thirteen years, had you bought the TSX Venture index on December 22nd (give or take a day), you would have had the opportunity to sell within the next 60 days for a handsome and consistent profit. In fact, you would have had the chance to make a profit 100% of the time. Difficult to beat those odds.”
Furthermore,
“For the past 13 years, on average, the TSX Venture has increased approximately 11.85% within 60 days following December 22nd. In nearly a third of those years, the highest level hit for the Venture during that 60-day period came in January (2008, 2010, 2013 and 2015), making the maximum potential profit for traders unusually quick.”
Click here to read An Amazing Track Record.
Lastly,
“Take a look at the compelling chart below. It documents the potential return of the TSX Venture had you bought the index on any December 22nd (give or take a day) over the last thirteen consecutive years and sold within a sixty-day period.”
The TSX Venture closed at 720.15 on December 22nd. This morning the junior index hit a high of 819.74, nearly a 100 point move, representing an increase of 13.82%. Once again, the TSX Venture trading strategy of buying the index in late-December has worked.
If the exchange moves another 6.18% higher it will have entered a bull market from the close on December 22nd. Meanwhile, gold traded up to a high of $1,221.36 as the U.S. dollar continues to show weakness.
Have a great weekend,
Alex
