BALTIMORE (Stockpickr) -- Mr. Market started 2014 off on a sour note, giving back around 5% in the first six weeks of the year. In fact, the New Year kicked off the first time we saw four straight down weeks since 2011.
That's right -- we've just lived through the longest stretch of unabated selling in two and a half years. So even though that 5% drop isn't all that jarring on an absolute basis, the length of time since the last "up week" for the S&P 500 has been tough. For the record, I think we're still headed higher from here. Yesterday's session was just a preview of that.
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But that doesn't mean that you should breathe easy just yet. There's still a chance you've got some toxic stocks in your portfolio. Today, we'll take a technical look at five of them.
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, these toxic stocks are 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 in the weeks and months ahead. 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.
So without further ado, let's take a look at five toxic stocks you should be unloading.