Another factor is tax-loss selling that reaches a crescendo at year-end.

The spread has been wider: late last year, because of intense tax-loss selling, it hit 1.20 points.

More support for the January effect is found in year-end tax-loss selling.

Their appeal goes up, he said, "if we can add in the possibility of a rebound from the ceasing of tax-loss selling."

Fischer has been steadily reducing its Kodak holdings and calls the stock "a great candidate for tax-loss selling."

Several suggested that the stock's depressed price is also leading to year-end tax-loss selling.

Maxpharma 3 7/8 158.7 Restructured company recovers from tax-loss selling.

He quoted her as saying: "It completely screwed up our tax-loss selling.

Along the road to retirement, however, some other options won't be available to you, like tax-loss selling or donating appreciated stock to charity.

He said that opportunities in the market now lie with those stocks going through tax-loss selling.