BALTIMORE (Stockpickr) -- Buckle your seatbelt. The S&P 500 looks ready for another correction.
After rocketing straight up in February, the big index is sitting at the top of its trading range, an indication that we're due for some sideways price action in March. As far as the index is concerned, that's just fine; we're in a "buy the dips market" right now, so buyers should be eager for another dip.
The real trouble comes, though, when you hold onto "toxic stocks" during a correction. Those are the names that crush your portfolio's performance when the market takes a breather. That's why, today, we're taking a technical look at five "toxic stocks" you should start selling.Just to be clear, 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, sellers are shoving around these toxic stocks 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. >>5 Stock Charts to Buy for Gains in March 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.
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