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 Tech Stocks to Sell or Avoid

Last up on our tour of toxic technology stocks is (CRM - Get Report). Salesforce is another name that's provided some pretty impressive gains for investors for most of 2012, but looks a whole lot less attractive in the short-term. While that doesn't mean that you should unload your CRM holdings right away, it may be worth considering for a short trade if the pattern breaks down.

CRM is currently forming a double top, a pattern that's formed by two swing highs that come in at approximately the same level. For Salesforce, that resistance level is right at $160, a price that's been a challenge for the firm for the entire year. Put simply, after a 51% rally in shares this year, sellers are more eager to sell and take gains at $160 than buyers are to keep buying. That sets the stage for a top in the stock.

The sell signal (or the short signal, if you're so inclined) comes on a breakdown below $150 -- that's the support level that separates the two tops in CRM. If you decide to take a short trade here, I'd recommend keeping a tight protective stop; with the broad market finding an important support level of its own, the correlations in the S&P 500 could help awaken buyers in the next few weeks.

Salesforce also shows up on a list of 8 Big Technology Stocks Leading the Market.

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
CRM $58.51 0.00%
NOK $5.96 0.00%
ORCL $35.70 0.00%
QCOM $44.02 0.00%
AAPL $94.02 0.00%


Chart of I:DJI
DOW 16,204.97 -211.61 -1.29%
S&P 500 1,880.05 -35.40 -1.85%
NASDAQ 4,363.1440 -146.4150 -3.25%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs