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 in 2013

Best Buy

It's been a tough year for electronics retailer Best Buy (BBY - Get Report). Shares of the $4 billion firm have slid 50% in the last year, pulled lower by thinning margins and a tough environment for retailers in general. But the selling may not yet be over -- at least in the short-term -- if the price pattern in shares holds up.

Right now, Best Buy is forming a descending triangle, a setup that's formed by horizontal support below shares and downtrending resistance to the upside. Essentially, as shares of BBY bounce in between those two technical levels, the stock is getting squeezed closer and closer to a breakdown below support. When that breakdown happens, investors have a sell signal for the stock. Best Buy's support level currently sits right at $11.

The descending triangle pattern in BBY is a shorter-term pattern -- it's only been forming for the last month and change. And while that means that the trading implications of the breakdown are shorter too, the combination of a descending triangle breakdown and a fall to new lows for BBY make the stock's downside potential much bigger if a slide below $11 does happen. Keep a close eye on this one.
2 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
ATVI $28.12 0.00%
BBY $28.12 0.00%
FNV $54.40 0.00%
MRK $49.03 0.00%
NRG $9.58 0.00%


Chart of I:DJI
DOW 15,973.84 +313.66 2.00%
S&P 500 1,864.78 +35.70 1.95%
NASDAQ 4,337.5120 +70.6750 1.66%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs