5 Toxic Stocks You Need to Sell Now

BALTIMORE ( Stockpickr) -- A handful of unlikely stocks could be toxic for your portfolio right now.

I'm not talking about the obvious names -- the ones grabbing the headlines with negative news or the ones with the heftiest short interest. Instead, these stocks are otherwise unassuming. That's what makes them so dangerous to own right now.

Mr. Market has been enjoying a hefty rally since the start of June 2012, climbing 10.4% since equities found their bottom. Just to be clear, that's a rally of pretty massive proportions for a three-month span. And the stocks that aren't participating in the rally are sending a warning signal to investors; so are the ones that have already used up all of their buying pressure. Today, we'll take a technical look at five toxic names that fit those two conditions.

>>5 Unloved Stocks to Crush the S&P

To be fair, the companies I'm talking about today aren't exactly "junk." 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.

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 Under $10 Set to Soar

So, without further ado, let's take a look at five "poison stocks" you should be unloading in September.  

If you liked this article you might like

Energy Takes a Backseat as Crude Oil Stabilizes Under $50

Alibaba and Tencent Could One Day Be Bigger Than Apple

Stocks Remain Lower Even After Fed's 'Beige Book' Finds Steady U.S. Growth

Stocks Hold Lower as Crude Oil Plummets Below $48

S&P 500 and Nasdaq Say Goodbye to Record Highs as Energy Disappoints