5 Toxic Stocks That Could Sink Your Portfolio

BALTIMORE ( Stockpickr) -- Make no mistake, the broad market is in correction mode right now. The S&P 500 is heading into a fourth week of not making any price progress, and while the downside action hasn't been particularly painful (yet), the sideways action in stocks continues to grind at investors who waited too long to click the "buy" button on their brokerage accounts.

>>Beat the S&P in 2014 With the Stocks Everyone Else Hates

More important, it's the correction happening behind the scenes that's really giving back gains; individual names and specific sectors are faring far worse than the S&P right now. That's especially true in stocks that have been momentum winners up until now.

The tech-heavy Nasdaq Composite, for instance, has shed close to 4% in March, and it's technically positioned to roll over even further next week.

Put simply, owning specific "toxic" stocks could be hazardous to your returns as we head into April. So, which stocks are set to drag your portfolio the lowest in the next few months?

Today, we're taking a technical look today at five toxic stocks you should start selling.

>>5 Stocks Under $10 Set to Soar

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.

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 Big Trades to Brace for a Correciton

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

If you liked this article you might like

Apple Watch Issues Pull Nasdaq to Session Lows, Dow and S&P 500 in Flux

Ford to Cut Production as Auto Sales Continue to Decline

The Wait for 'Milestone' Fed Meeting Keeps Stocks in Flux

Stock Futures Trade Flat as Balance Sheet Decision From Fed Is Awaited

Fed Decision, Mexico Earthquake - 5 Things You Must Know Before the Market Opens