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

General Motors

Here's another stock that's in make-or-break mode right now: General Motors (GM - Get Report). 2012 has been a pretty unspectacular year for GM -- shares of the Detroit automaker have moved around 13% higher since January, falling a couple of hundred basis points shy of the S&P 500's performance over the same period. And now, with shares looking toppy right now, I'd recommend investors take a second look before hitting the "buy" button.

GM made a near-term high in September, pushing up through the $25 level only to get swatted back down to support at the 200-day moving average. That's a signal that there's a glut of supply of shares at $25. In other words, it's a price where sellers are more eager to sell and take gains than buyers are to buy.

While GM did manage to break its downtrend from the spring, this stock's uptrend is tenuous right now and it's testing support. A break below support means that GM is back in downtrend mode.

Momentum adds some important food for thought for GM buyers - the uptrend in RSI broke back in September. Since RSI is a leading indicator of price, that's a red flag worth heeding in October. While support hasn't been broken yet, I'd recommend selling a break below the 200-day moving average.
5 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
CAT $72.65 2.01%
CTXS $76.67 -0.23%
GM $36.20 -0.47%
SPLS $12.07 -1.95%
VNO $96.76 -0.81%


Chart of I:DJI
DOW 17,719.92 -78.57 -0.44%
S&P 500 2,080.41 -9.70 -0.46%
NASDAQ 5,108.6660 -18.8590 -0.37%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs