Junior Miners Soaring - Canadian Tax-Loss Selling is Over

Coming off of a horrible 2008 and greatly oversold position junior mining stocks including gold have been soaring.

In addition to following broader markets upwards, readers should by know be aware that most juniors are listed in Canada.

Why does this matter? because the Canadian tax-loss selling is stronger than in the U.S. Canadian citizens can apply losses back three years (last we knew) and they actually get a check from the government, rather than a lowering of their taxes such as in the U.S. Talk about an incentive to sell!

Given abysmal performance of almost every single asset class in 2008, it does not take much of a leap to realize that Canadian tax-loss sales exerted an even stronger downward pressure on these small and often speculative stocks.

Now that the selling pressure is over, the stocks are ripping along. They will go up until they don't.

Just to use an example, we show Canadian based, base metals miner, Lundin.

http://finance.yahoo.com/echarts?s=LMC#symbol=LMC;range=2y