Many people have asked lately where we find all these plays on the bottom that look or are ready to jump.  One of my main focus every January is finding tax loss selling plays. You've seen it huge this January with REITS, small finnies, many beaten down stocks are popping. You look at companies like $cbc or $fbp that we been playing that was teh strategy on them.  Look at CBC last week its hotter than a hooker sitting in a baptist church. Here is a post I wrote for the premium subscribers in DECEMBER to get them ready for the month of Booooooooom. _____________________________________________________________________________    January is a frigging nutty month for trading beaten up small cap, penny, china ding dog stocks. (except for last year when the market was in freefall). What you will see is with the aftermath of spring 2009 a lot of big caps, smallcaps become microcaps! There can be great opportunity in these names as January starts. See many hedge funds, mutual funds, index funds don’t trade or cant hold smallcap stocks. But they do hold midcap and large stocks. What you have seen this year is many funds liquidated huge amounts of holdings either from deleveraging, margin selling, or just the liquidation of the fund itself essentially driving down many stocks below the 5 dollar threshold. Once it goes below that level many traders will also start to dump the stock as numerous brokerages wont let you hold these type of stocks on margin. Then months later when the Russell or any other index ore even an etf does its rebalancing it drops the stock out of its collection which then starts more forced selling. Next a mutual fund that is supposed to mirror said index will also have to sell….which means more forced selling. It’s a never ending cycle of selling. This type of forced selling can make a stock excessively oversold. Just when these type of stocks rebound slightly comes tax loss selling. As this was a great year for many investors many will unload their dogs to offset their ridiculous gains for the year. People will sell their biggest percentage losers to offset their capital gains this year.   Short sellers themselves this time of year will prey upon these stocks as they know that many longs have to unload them. If they can apply pressure on many of these weak stocks the volatility of the drop can be tremendous   These stocks can pop for a few different reasons   Shortsqueeze: You can get short interests data from shortsqueeze.com it will give u the interest and the days it takes to cover. This is all you need to see how much gas is in the burner. As they have pushed down the stocks for the last quarter January is a perfect time for them to cover their positions since the tax loss selling is over. A big short position can really magnify the gains and make a small cap stock go Parabolic (your getting double the buying pressure). The second force involved in this is the guys like us. The momo traders. Once somebody like me sees the squeeze he goes in and starts buying blocks, other traders see this too and get in for the fun. Now with twitter you get a viral action since people relay the information to each other in real time. The squeezes are much harder and stronger due to the advent of social networking. This squeeze could potentially go on for a week.   Also all the tax selling has subsided. No overhang or dark cloud over the stock. Overtime you will see the stocks drift back towards their natural range and valuation. As over time the fundamentals do play out and stocks will slowly and naturally drift to that level of equilibrium. You will also get the buying pressure from the guys who were dumping for tax reasons but now they want their stock back to get back their money ( most people are frigging banana blowers and cant just let a stock go and take a loss. 90% of traders) So they start buying.   Now you got a booooooooom baaaaaaaaalin scenario. The banana biters who want their stock back, the short sellers covering, the momo traders jumping in for the epic squeeze, the twitter leaches who miss the first 10% of the move but see so00000 many posts on it that they chase the squeeze. And bam there you go a big punch in the nuts to anybody who is still short.   Its already happening look at some of the stocks this week $pip $etrm $ftk $gtxi $rprx $banr a whole host of them are already starting to pop. They got the secret sauce that I listed above.   I have below a list of small caps that could. ( I narrowed it down as it was too long) I have in order from the stocks that experienced the biggest losses for the year on down.       No. Ticker Performance (Week) Performance (Quarter) Performance (Year) Average Volume Volume 1 CORS 0.00% -55.56% -96.40% 552.47 0 2 HRZB -17.86% -72.29% -95.15% 167.83 87675 3 PCBC -9.01% -39.88% -93.92% 1529.91 688252 4 RPRX 1.49% -26.88% -93.54% 1503.57 1795779 5 STSA 0.00% -70.44% -93.18% 1538.27 471840 6 FTBKD -15.32% -67.02% -91.38% 145.45 0 7 CACB -17.86% -44.80% -89.78% 222 141635 8 FRP 0.00% -9.76% -88.72% 702.51 0 9 CPF 9.09% -49.03% -86.85% 1137.52 380604 10 MDTL -14.29% -80.65% -86.67% 340.19 0 11 CIGX 15.25% -28.42% -82.25% 1163.1 791385 12 TONE 9.52% -79.09% -81.60% 130.21 59490 13 BOFL 24.24% -66.12% -80.52% 103.91 113418 14 CTZN -8.33% -44.30% -79.05% 131.97 46473 15 SQNM 3.67% 22.54% -78.63% 4901.51 945452 16 FBP -11.45% -22.92% -78.54% 1286.21 1228159 17 BUSE 1.08% -20.59% -78.47% 300.41 366407 18 BBX -1.54% -57.19% -77.78% 384.01 158800 19 BEAT 0.86% -13.93% -76.19% 686.11 363205 20 ABCW 4.76% -47.20% -76.09% 261.08 52103 21 GTXI 12.53% -68.75% -76.01% 746.88 1107787 22 UCBI 2.21% -35.71% -75.77% 1048.17 918283 23 DPTR -14.39% -33.52% -75.00% 9138.67 5639052 24 SNV 0.98% -44.20% -74.73% 19313.16 7021434 25 MTXX 3.17% -26.18% -74.35% 417.68 169524 26 JTX -23.18% -22.32% -73.17% 722.43 1822009 27 PVTB 0.44% -63.15% -72.07% 2017.72 436489 28 MBHI 2.56% -47.37% -71.43% 115.6 95566 29 BANR 14.53% -4.29% -71.24% 312.84 186679 30 CBC 13.00% -22.60% -70.76% 150.87 289636 31 PACR 2.90% -14.25% -69.42% 715.8 278157 32 AMFI -27.39% -29.63% -68.51% 476.88 551736 33 RZ 11.32% -23.87% -68.36% 730.01 5146220 34 CATY 4.21% -7.02% -67.17% 1256.98 567517 35 CTBK -2.82% -34.85% -66.92% 109.63 72317 36 SMTB 7.36% -55.33% -65.99% 114.77 128841 37 IBCP 4.17% -59.68% -64.62% 165.01 79776 38 CHB 0.00% -58.33% -64.29% 1531.67 0 39 YRCW 15.73% -77.80% -64.11% 9038.14 4860930 40 CT 15.93% -58.81% -63.61% 412.14 248930 41 OSIR 2.46% 2.17% -63.10% 247.89 183139 42 FCF 0.22% -18.39% -62.26% 510.37 337786 43 MBRK 5.56% -51.69% -62.00% 370.17 378999 44 WAL 3.69% -40.99% -61.05% 696.77 278671 45 SUSQ 4.31% 0.83% -60.43% 905.46 797091 46 HURN 5.56% -8.31% -59.53% 545.21 155070 47 HNSN 13.96% -17.03% -58.17% 470.02 682072 48 ENER -3.64% -11.02% -58.03% 2595.38 1910405 49 NPBC 4.96% -4.67% -57.65% 1586 962620 50 PGNX 1.85% -19.08% -57.23% 158.67 70339 51 CHP -8.11% -36.74% -56.55% 210.84 166842 52 HNBC 2.37% 18.86% -54.36% 208.69 116009 53 PNFP 7.90% 13.67% -51.46% 265.8 150773 54 STC 10.47% -10.17% -51.24% 286.29 131504 55 HBAN -1.34% -15.95% -51.13% 20907.28 6343774 56 DRL 25.00% -1.06% -50.00% 167.5 136005 57 QCOR 9.32% -15.34% -49.62% 691.08 646856 58 ESLR 7.28% -17.77% -49.22% 3004.18 4505581 59 RAS -2.19% -56.35% -48.46% 746.69 1447906 60 STBA 2.20% 35.09% -48.33% 135.7 66148 61 PCS 2.12% -19.85% -48.08% 8848.28 2216861 62 EBS 8.00% -23.12% -47.80% 340.66 143085 63 ZION -3.48% -29.87% -47.66% 6244.31 2791898 64 LDK 0.43% -21.71% -46.42% 4712.92 1805508 65 ABMD 3.51% -11.16% -46.16% 237.3 181399 66 FTK 34.31% -32.51% -45.63% 568.81 730663 67 NWBI -0.27% -51.17% -45.13% 559.95 1999643 68 GMXR -3.90% -7.38% -44.51% 1174.94 347871 69 VLNC 10.99% -44.51% -44.51% 797.3 8321605 70 DRYS -1.17% -12.92% -44.37% 20981.83 7099190 71 FMBI 1.18% -2.63% -44.06% 542.55 244422 72 ASBC 5.18% -0.09% -43.83% 1795.44 795014 73 DSCO -4.55% -43.24% -43.75% 4940.19 2216707 74 FNB -1.84% -1.84% -43.69% 728.72 425913 75 BBI 2.90% -39.32% -43.65% 2426.3 1105550 76 WL -0.32% -11.60% -41.81% 761.04 384809 77 WTNY 1.31% -4.33% -41.75% 1230.41 287874 78 HAFC -1.61% -26.06% -40.78% 400.62 300762 79 JAKK -1.69% -15.96% -40.77% 344.76 182254 80 LAB 4.03% -20.67% -40.71% 393.47 121739 81 CUZ -1.29% -11.84% -39.89% 1059.44 694608 82 SUN -1.62% -8.05% -39.16% 2880.98 1665066 83 WNR 0.00% -26.77% -38.66% 3316.02 1398237 84 SPTN 3.86% 1.06% -37.80% 158.89 57358 85 WINN -0.50% -29.27% -37.70% 420.2 322613 86 LCC 5.43% -0.41% -37.26% 9749.65 8448132 87 MATK 4.87% -17.72% -36.72% 406.38 201617 88 AOB -1.14% -11.59% -35.94% 1003.52 2016246 89 VPHM 0.72% -15.15% -35.48% 1073.86 405248 90 ABK 5.00% -52.81% -35.38% 17183.4 4003341 91 CCRT 0.66% -23.94% -35.38% 211.88 173298 92 SPWRA -2.04% -21.12% -35.11% 2467 1341832 93 EK 0.00% -12.93% -34.50% 6834.25 1574814 94 LEAP -1.07% -11.13% -34.36% 4002.14 1130018 95 IMN -1.11% -7.36% -34.12% 286.81 220443 96 FLWS 12.00% -28.21% -34.03% 188.56 107982 97 UBSI 5.76% 6.31% -34.02% 321.06 347812 98 ABR 16.07% -33.45% -33.90% 145.84 80471 99 LPHI 2.70% 23.15% -33.29% 100.92 125041 100 DAC -1.09% -6.19% -32.69% 179.65 71691 101 RST 0.00% -26.82% -32.32% 194.35 514157 102 ALY 7.18% -14.06% -32.18% 467.25 187143 103 HOTT 7.11% -17.47% -31.72% 1324.93 561611 104 MGM -1.16% -24.54% -31.61% 26961.43 10566678 105 AVD 2.69% -8.13% -31.10% 100.62 91357 106 TRST -3.09% -1.26% -30.56% 263.91 225987 107 RF -2.19% -16.77% -30.48% 30219.44 10357782 108 CONN 5.36% -47.70% -30.42% 294.85 222896 109 LMNX 2.95% -14.27% -29.68% 326.3 113181 110 CXM 0.00% -70.06% -29.33% 1464.74 2696966 111 STI -3.16% -8.78% -29.15% 8506.59 3490376 112 FR 5.11% -9.17% -29.14% 1032.89 459928 113 CMED -0.50% -15.03% -28.54% 514.58 389421 114 KNDL 3.82% 8.07% -28.11% 189.49 75975 115 ONB 3.80% 14.57% -28.07% 951.26 928686 116 FTEK -4.13% -31.97% -27.67% 180 428699 117 SUF -10.53% -53.42% -27.66% 427.98 394956 118 ISYS 5.95% 23.86% -27.63% 124.4 49468 119 MBFI 3.34% -3.18% -27.39% 452.89 155549 120 AMR 1.70% -2.88% -27.18% 15568.31 7841384 121 ALNY 4.71% -22.29% -27.13% 282.58 103191 122 XNPT 7.25% -14.95% -26.28% 357.23 279427 123 PFS -0.28% 4.23% -26.23% 359.98 140683 124 TBSI -2.37% -15.33% -26.22% 273.27 186020 125 EGLE 1.20% -2.50% -25.81% 2770.69 1075396 126 PRKR 5.14% -55.88% -25.51% 309.46 453306 127 GB 1.65% -13.38% -25.40% 197.16 144622 128 COGT 5.70% 1.29% -24.83% 671.63 298288 129 GBCI 1.92% -6.18% -24.81% 737.52 283423 130 ZLC -6.99% -66.62% -24.02% 973.49 3177037 131 ACAS 4.60% -24.24% -22.84% 4745.13 4624702 132 BLUD 5.91% 16.52% -22.50% 582.99 263170 133 TLT -1.20% -7.94% -22.45% 3520.95 1919066 134 PSYS 0.14% -18.51% -22.41% 1223.78 353290 135 JBLU 0.36% -6.59% -22.11% 6642.96 6527411 136 CVBF 7.77% 14.29% -21.76% 1117.38 1078253 137 ISIS 10.76% -25.02% -21.58% 1465.4 823199 138 VLY 2.98% 16.69% -21.43% 917.94 317324 139 GMR -1.40% -8.32% -21.23% 948.53 447316 140 CMTL 3.23% 8.60% -21.21% 292.91 251792 141 AKRX -2.67% 30.00% -20.87% 440.6 168684 142 CBST 2.03% -6.36% -20.82% 820.21 297407 143 PACW 10.88% 5.29% -20.59% 290.08 226762 144 BRNC -2.84% -23.74% -20.43% 336.12 138464 145 VMC 4.51% -1.49% -20.42% 1123.71 652703 146 GVA 4.05% 14.94% -20.38% 691.16 205405 147 APOL 5.52% -15.96% -20.36% 3351.2 1166411 148 JEC 1.99% -17.24% -19.98% 2261.3 1093426 149 REG 3.58% -4.26% -19.85% 1464.76 514732 150 TRE 10.65% 20.77% -19.29% 428.78 214170 151 BKC 2.15% 11.82% -19.27% 1750.51 694240 152 UMBF 1.94% -3.03% -19.18% 160.89 123942 153 CEPH 4.25% 7.16% -19.15% 2256.35 902273 154 TPC 4.45% -8.87% -18.73% 257.32 165155 155 AVAV 3.06% 6.24% -18.61% 160.8 100161 156 KIM 5.16% 4.45% -18.43% 8055.72 3083379 157 TGIC -11.43% -76.87% -18.42% 171.67 0 158 AF 0.95% 13.66% -18.29% 1081.2 718395 159 TITN 5.20% -4.86% -17.92% 213.85 168523 160 PMTI 4.64% -41.03% -17.87% 172.33 192052 161 EMKR -1.83% -20.15% -17.69% 679.41 2245486 162 TASR -2.03% -9.75% -17.61% 447.75 388919 163 MIR 0.58% -6.37% -17.49% 1604.9 596123 164 WTI -1.44% -1.77% -17.42% 721.42 384581 165 SGMS 0.00% -9.48% -17.27% 1182.07 345595 166 CVA 3.64% 6.00% -17.08% 1110.85 930007 167 ALJ -0.80% -24.24% -17.00% 183.51 1085561 168 THOR -1.28% -11.79% -16.65% 845.97 556191 169 HAWK 2.45% -31.62% -16.42% 129.08 64794 170 TWGP 4.50% -5.49% -16.05% 305.96 138370 171 DCGN -11.11% -68.63% -15.79% 3889.96 1777191 172 COCO 3.92% -25.42% -15.76% 2731.04 1299442 173 BEBE 2.84% -19.05% -15.62% 704.59 495937 174 ARNA -5.88% -21.43% -15.59% 2311.05 2637792 175 CYPB -2.53% -29.82% -15.35% 341.53 356794 176 BPFH 0.88% -13.25% -15.17% 661.05 468520 177 RRR -0.14% -0.68% -14.91% 578.62 190844 178 EPIQ 5.32% -3.59% -14.72% 289.71 105560 179 ONXX 2.60% -8.76% -14.37% 1154.31 428041 180 CBU 1.69% 7.48% -14.27% 167.78 97953 181 PVA 2.04% -5.01% -14.26% 524.97 284581 182 ELY 1.94% 4.10% -14.18% 1102.71 479861 183 ASTE 3.82% 4.54% -14.08% 197.31 83259 184 NLS -6.40% 11.76% -14.03% 111.54 142052 185 MBLX -2.32% 6.73% -13.92% 165.13 142557 186 GDP 2.58% 1.02% -13.82% 914.46 605838 187 MMR 12.67% 10.17% -13.78% 1810.37 2332246 188 PNX -3.40% -13.94% -13.15% 1458.14 554634 189 USU -4.18% -18.75% -13.14% 1638.14 1117145 190 SONC 2.81% -4.33% -12.82% 600.35 424504 191 MYGN 8.49% -4.34% -12.75% 1459.2 314254 192 KSWS 3.52% 10.50% -12.28% 119.63 80211 193 TOL 2.39% -5.71% -12.18% 4268.49 1170936 194 HW -1.66% 49.37% -12.15% 1194.7 2245220 195 VIVO 0.79% -14.04% -12.02% 221.6 179353 196 ECHO -3.19%   -11.52% 214.54 16028 197 AGP -0.11% 15.85% -11.38% 721.73 711553 198 STXS -4.88% -13.33% -11.36% 299.57 248451 199 ESE -1.78% -9.64% -11.18% 228.52 105023 200 WTR 0.62% 4.05% -11.12% 1407.06 899892 201 IBOC 5.11% 14.86% -11.08% 386.1 308191 202 WBS 0.00% -2.48% -10.81% 718.25 403830 203 HAIN 9.64% -12.56% -10.63% 497.2 361099 204 IAT -0.38% -0.05% -10.53% 157.03 47033 205 CRK 0.33% 4.32% -10.52% 658.32 326231 206 OPTR -2.43% -20.82% -10.49% 184.92 274189 207 ALKS 2.03% 1.16% -10.23% 919.13 1061760 208 JACK 0.91% -3.30% -9.78% 765.39 287892 209 AFAM 3.86% 34.70% -9.74% 162.31 100399 210 SVU -0.24% -15.91% -9.59% 4228.5 1829728 211 ERII -3.38% 14.91% -9.50% 357.91 291690 212 SKH 1.46% -7.62% -9.48% 139.01 58115 213 LNG -0.77% -13.13% -9.47% 554.02 485837 214 UCO 14.35% 22.34% -9.20% 4866.17 3475178 215 SRDX -3.69% -5.90% -9.18% 139.92 56269 216 EXM -5.19% -3.47% -9.09% 2001.61 696890 217 INWK 3.83% 24.63% -8.85% 156.07 112326 218 CMLS 0.00% 29.71% -8.84% 150.86 48825 219 SMBL 5.98% 1.47% -8.82% 539.87 319212 220 PHM 5.84% -12.31% -8.78% 7747.32 4039398 221 SBIB 5.05% -26.29% -8.46% 989.18 922290 222 APEI 3.99% -0.73% -8.17% 173.04 143384 223 MHGC -4.04% -25.04% -8.15% 301.74 122373 224 SWY 1.85% 8.77% -8.06% 5600.74 1829357 225 OPEN -0.97% -3.50% -7.91% 135.84 53013 226 HOMB 3.97% 12.23% -7.73% 111.63 76859 227 CNVR 0.00% -4.00% -7.69% 106.76 8400 228 CCC 2.21% -6.47% -6.77% 735.01 1063645 229 PARD -5.26% -75.94% -6.74% 3233.05 1953737 230 HEV 8.46% -3.75% -6.71% 749.21 1450982 231 PQ -2.77% 1.12% -6.66% 1623.84 572120 232 CLH -0.79% 4.57% -6.51% 169.21 108589 233 AOL 0.73%   -6.46% 3940.56 1714166 234 FORR 4.25% 0.88% -6.13% 101.71 50513 235 UMPQ 4.72% 26.38% -6.13% 1066.33 1077714 236 IRM -0.73% -14.50% -6.07% 1236.54 901020 237 FCEL 29.89% -14.92% -5.93% 774.15 7465936 238 STEM -0.78% -22.42% -5.88% 2834.13 1041782 239 WMGI 2.67% 6.83% -5.82% 390.3 130691 240 FULT 1.25% 20.76% -5.82% 1308.1 517270 241 NUVA 7.05% -18.64% -5.37% 1088.79 462842 242 FTO 3.25% -14.17% -5.24% 2806.01 1797449 243 ROYL -2.21% 26.67% -5.00% 370.3 102886 244 NAL 0.99% 14.51% -4.90% 901.32 336241 245 GTIV 2.54% 9.30% -4.82% 224.98 109371 246 WIBC 12.77% 12.92% -4.77% 137.25 86490 247 MRTN 0.33% 8.13% -4.64% 134.95 55639 248 ALGT -1.66% 21.99% -4.61% 376.39 188326 249 FRED 2.73% -19.29% -4.60% 331.81 259877 250 GAME -0.19% -10.61% -4.37% 2265.13 584078 251 NITE 2.45% -29.66% -4.27% 2190.06 1650567 252 PBI 0.53% -7.55% -4.23% 1751.13 1778812 253 LXK 1.21% 19.63% -3.72% 2137.32 525727 254 NAT -1.44% 2.97% -3.55% 504.28 266783 255 LHCG 2.12% 15.68% -3.50% 151.24 78807 256 RGLD -0.25% 5.03% -3.17% 731.15 574588 257 ALSK 3.16% -10.61% -3.08% 454.89 796008 258 TWI 4.43% -5.76% -2.79% 666.29 380067 259 BJ 0.36% -7.25% -2.51% 1191.39 1119352 260 CAL -0.40% 6.60% -2.49% 7229.1 5168750 261 MLM 1.89% -0.71% -2.24% 464.24 376346 262 IDCC 4.71% 15.05% -2.15% 863.31 416315 263 BRKL 0.92% 0.71% -1.88% 340.83 144020