BALTIMORE ( Stockpickr) -- When everyone's opening presents this Christmas, it's no fun to get coal in your stocking. Likewise, when the market's sitting on new all-time highs this December, it's no fun to see "toxic" names drag your portfolio through the mud.
I like this market, and the evidence suggests that 2014 will tack on some respectable gains as well. But that doesn't mean that now's a good time to own all stocks. Laggard names are still poisonous to your portfolio in a bull market. Maybe more so.
That's why we're taking a closer look at five "toxic" stocks you should be selling in December. To be fair, the companies I'm talking about today aren't exactly "junk."By that, 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. >>Buy the Dips: This Bull Market's Not Over 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.
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