BALTIMORE (Stockpickr) -- What goes up must come down – with stocks pressing up against new all-time highs once again this week, that's an adage that's weighing on investors' minds as we head into 2015.
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All told, the big S&P 500 index has climbed 12.1% since the calendar flipped to 2014 -- and approximately one in four trading sessions has ended with a record high for the big index. That's quite the feat. But as I've said repeatedly over the course of this year, unlike 2013, there's a very big chunk of this market that's failing to perform. If you own one of these "toxic" stocks, you could be putting cement shoes on your portfolio.
With the new year fast approaching, it's time to get your portfolio set for 2015. That's why, today, we're taking a closer technical look at five stocks to sell in December.
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.
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