I've made it no secret that I like stocks right now. In fact, I've been harping on the technical and fundamental reasons for buying equities since the start of the summer. But while I like stocks, I don't like all stocks.
While stocks look strong in general right now, this isn't a "dartboard market." By that, I mean that we're not in the sort of stock market where you can find success by throwing a dart at a board full of ticker symbols (something that may pass for a successful strategy during a roaring bull market). Yes, stock picking is particularly valuable right now -- and knowing which stocks to avoid is more than half the battle for the best stock pickers out there. That's why we're taking a technical look at five names that could be toxic for your portfolio this fall.To be fair, the companies I'm talking about today aren't exactly "junk." I mean, they're not next up in line at bankruptcy court -- and, in fact, I even like a couple of this week's names fundamentally. But that's frankly irrelevant; from a technical analysis standpoint, they're some of the worst positioned names out there right now. For that reason, fundamental investors need to decide how long they're willing to take the pain if they want to hold onto these firms this Fall. And for investors looking to buy one of these positions, it makes sense to wait for more favorable technical conditions (and a lower share price) before piling in. >>5 Stocks Hedge Funds Hate -- But Should You? For the unfamiliar, technical analysis is a way for investors to quantify qualitative factors, such as investor psychology, based on a stock's price action and trends. Once the domain of cloistered trading teams on Wall Street, technicals can help top traders make consistently profitable trades and can aid fundamental investors in better planning their stock execution. So, without further ado, let's take a look at five "toxic stocks" you should be unloading in October.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV