BALTIMORE (Stockpickr) -- With the S&P 500 making new all-time highs this week, it's more important to have exposure to any stocks than it is to be a stock picker, right? Wrong.
Even though a rising tide tends to lift all ships, the same can't be said for the boats with holes in them. Let's face it -- some stocks are downright toxic for your portfolio, even in a bull market. Those are the ones that make sense to sell sooner rather than later. Today, we'll take a technical look at five toxic names to unload this month.
To be fair, the companies I'm talking about today aren't exactly "junk.">>5 Stocks Everyone Hates -- but You Should Love 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 summer. 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. 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. >>5 Stocks Poised for Big Breakouts So without further ado, let's take a look at five "toxic stocks" you should be unloading.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
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
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV