BALTIMORE (Stockpickr) -- Owning the wrong stocks could be hazardous to your portfolio's health this holiday season.
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That's actually been the case all year long. Trite as the old expression may be, "it's a market of stocks, not a stock market" has held incredibly true in 2014. Stock market correlations have been low all year long in 2014 -- and falling. That means that it's been incredibly easy to pick losing stocks in this environment. As I write, nearly a third of the S&P 500 is still down on the year, even though the index itself is up more than 10%.
And that "market of stocks" doesn't look likely to change in 2015. That's why we're taking a technical look at five "toxic stocks" you should sell (or short) 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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