Despite major US indices having big down days Thursday, the TSX Venture kept on climbing. Canada’s small-cap exchange notched its 6th consecutive increase as its predictable seasonal upswing plays out. We outline this trading strategy and why to buy the TSX Venture in late December every year. Titled, Historically, there is no better time to buy the TSX Venture; for investors in Canada, it is a must read.
Timeless Advice for TSX Venture Investing
While it’s updated annually, the advice appears to be timeless, at least in recent history.
“For the past fifteen years, on average, the TSX Venture has increased approximately 12.40% within 60 days following December 22nd.”
Why January Spells Fortune for TSX Venture
More highlights from the December 22nd article titled Historically, there is no better time to buy the TSX Venture,
“In a third of those years, the highest level hit for the Venture during those 60 days came in January (2008, 2010, 2013, 2015 and 2018), making the maximum potential profit for traders very quick. This past year, the peak came rapidly for the Venture following December 22nd, 2017. From 810.30 on December 22nd, the Venture catapulted to a near four year high on January 9, 2018, of 939.66 – good for an eighteen-day gain of 16%.”
Well, in 2019, we could be seeing an even faster top! In just six trading days the TSX Venture is up 8.3%. A stunning return. Let me clarify. Since the TSX Venture closed at 530.20 on December 21st, the exchange is up 8.3%, having rallied for six consecutive days. It has yet to decline since we issued the seasonal TSX Venture trading notification.
CSE Outperforms Venture in Opening Sessions of 2019
The CSE is performing even better. Canada’s other junior, small-cap exchange is the Canadian Securities Exchange. Consisting largely of marijuana stocks, the embattled exchange (which lost more than 60% of its value from its high in 2018) is up a whopping 13.1% from its close on December 21st!
The perfect storm of low trading volumes, renewed optimism and the end of tax loss selling season make for a great investment opportunity every year. For TSX Venture investors speculating in thinly traded stocks, taking advantage of this move is a no brainer.
Click here to read Historically; there is no better time to buy the TSX Venture, in case you missed it.