BALTIMORE (Stockpickr) -- What a run. The S&P 500 has rallied 3.5% since last Monday, showing investors the most consecutive up days in more than a year.
Not that it feels like we're in much of a winning streak right now.In nearly four months of 2014 trading, the S&P 500 barely managed to move a full percent higher. Instead, correction has been the market's M.O. this year. So, with stocks in a near-term upswing this week, it makes sense to clean house. There's a big group of large-cap "toxic" stocks out there right now -- you may even own one or two of them. Today, I'll show you five big names you need to unload before the next leg down. 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. >>QE5 Is Coming -- Here's What It Means for Your Portfolio 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.
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 Plus 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