BALTIMORE (Stockpickr) -- The S&P 500 and the Dow made new closing highs yesterday, but don't let that fool you into thinking everything that markets are in "up, up, and away mode." Stock selection matters more than ever in 2014, and that's not likely to change with the calendar in the next few months.
Even though the S&P 500 Index is up double digits year-to-date, nearly a third of the individual stocks in the S&P 500 are actually down this year. It's the exact same story in the Dow. In other words, it hasn't been hard to own stocks that are toxic to your portfolio in 2014.
Today, we're taking a closer technical look at five new names that are looking "toxic" this fall.
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
So, without further ado, let's take a look at five "toxic stocks" you should be unloading.
Must Read: Sell These 5 Stocks Before It's Too Late