This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

5 Toxic Stocks to Sell Now


Last up today is AT&T (T - Get Report), the stock that's probably the least toxic of the toxic stocks. Like Reynolds, AT&T is just now coming off the heels of a pretty prodigious rally, up more than 24% since the first trading session in January. But it's the double top currently showing up in this stock's chart that gets my caution flag waving.

>>5 High-Yielding Stocks in a Strong Bull Trend

A double top is a technical pattern that's formed when a stock makes to swing highs that top out at approximately the same price level. While this could just be the start of a consolidation range (a normal occurrence after such a big rally), a breakdown below support at $35 means that it's not. That's your sell signal.

The 50-day moving average has done a good job of acting as a proxy for support since the start of the year. If you want to avoid watching AT&T feverishly, consider setting up a trade alert on a breakdown below the 50-day. That'll give you plenty of time to sell a breakdown below $35 -- and better still, it's a more useful indication of a change of trend is AT&T continues to move higher. Like a trailing stop, the 50-day moves with shares.

For another take on AT&T, it also shows up on a recent list of 5 Bullish Stocks to Buy on the Next Dip. To see this week's trades in action, check out the Technical Setups for the Week portfolio on Stockpickr.

-- Written by Jonas Elmerraji in Baltimore.


Follow Stockpickr on Twitter and become a fan on Facebook.
At the time of publication, author had no positions in stocks mentioned.

Jonas Elmerraji is the editor and portfolio manager of the Rhino Stock Report, a free investment advisory that returned 15% in 2008. He is a contributor to numerous financial outlets, including Forbes and Investopedia, and has been featured in Investor's Business Daily, in Consumer's Digest and on
6 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
A $40.92 0.00%
AZO $765.23 0.00%
INTC $30.28 0.00%
RAI $49.60 0.00%
T $38.82 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs