BALTIMORE (Stockpickr) -- Do you own one of these toxic stocks? Considering the fact that we're talking about almost a quarter trillion dollars in publicly traded equities, the chances might be higher than you think.
Put simply, some stocks just look "toxic" right now. And outperforming in this market is more about not owning the wrong stocks than it is about owning the right ones. That's why, today, we're taking a closer look at five toxic stocks to sell in May.
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 entry and exit points.
So without further ado, let's take a look at five toxic stocks you should be unloading.