BALTIMORE ( Stockpickr) -- While most investors pop the champagne on the heels of new all-time highs for the S&P 500, not all stocks are looking quite so attractive in April.
In fact, some stocks are looking downright toxic for your portfolio right now. This isn't a "dartboard market" -- that is, the kind of market where throwing a dart at the financial pages is a successful method of stock picking. That sort of environment only exists where we're sitting in the midst of a roaring bull market. It's still very possible to pick a dud right now.
But luckily, the duds are throwing off some signals right now.One of the biggest is relative weakness -- the stocks that aren't participating in the across-the-board equity rally are the ones that you need to think about unloading. And the ones that are looking outright bearish are the ones that you need to sell now. Today, we'll take a look at five "toxic" stocks that you need to be aware of. 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. But that's frankly irrelevant; from a technical analysis standpoint, they're some of the worst positioned names out there right now. 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. >>3 Huge Stocks to Trade (or Not) 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 stocks you should be unloading in April. >>4 Reasons Not to Buy Stocks in 2013
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts