BALTIMORE ( Stockpickr) -- As the broad market continues correcting, so too is the tech sector. But some names are doing a bit more than correcting. In fact, they're looking downright toxic right now.
The tech sector has been a bastion of safety since late 2011. Technology has been one space where fundamentals have handily outperformed Wall Street analysts' expectations, and as a result, some of the most notable examples of big names that have churned out huge gains this year; Apple (AAPL) and Zillow (Z) are a couple of conspicuous examples.
But not all tech stocks are showing that kind of momentum right now. That's why we're taking a technical look at five big technology stocks that could be toxic to your portfolio this month.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 tech names out there in the near-term. 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 Poised for Breakouts 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 tech stocks" you should be unloading in October.
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