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5 Toxic Stocks You Need to Sell


Web giant Yahoo! ( YHOO) has had a tumultuous run over the last year and change, but distill the $27 billion digital media company's price action just to 2013, and this stock has been in an orderly uptrend along side the broad market. Year-to-date, shares of YHOO have climbed around 22%. But it shouldn't come was a huge surprise that when the uptrend broke in the S&P, it fell even harder in Yahoo! last week.

>>3 Tech Stocks Spiking on Big Volume

It doesn't take an expert technical analyst to figure out what's going on in YHOO -- a glance at this stock's chart will do. YHOO's trendline support level acted as a springboard for shares all the way up, but once it gave out in last week's trading, it sparked a major selloff in shares. At this point, it's unclear where the selling in YHOO will end, but I'd stay away from the long-side until the new downtrend resistance line gets taken out.

Momentum, measured by 14-day RSI, adds some extra evidence to Yahoo's change-in-trend. RSI had been bouncing above 50 when shares were in bull market mode, but the momentum gauge broke down below that level last week. Since momentum is a leading indicator of price, that points to lower ground in YHOO.

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ACN $93.94 -0.24%
AIG $54.03 -0.26%
ITC $37.29 1.17%
RTN $109.93 1.09%
YHOO $45.10 1.42%


DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

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