BALTIMORE (Stockpickr) -- The S&P 500 gave back another 30 basis points yesterday, hacking away a little more at the tepid performance that stocks have managed to turn out so far in 2015. As of yesterday's close, the S&P is only 2.1% higher than it ended the year back in December.
What many investors don't realize is that the S&P 500 has actually been a pretty poor proxy for "the stock market" in 2015. That's because while the big index is more or less at breakeven right now, there's no shortage of individual stocks that are actually making pretty big moves -- both up and down.
And while the leaders have been doing a pretty good job of making up for the sideways slug in the market averages, the laggards have been downright toxic for your portfolio. Today, we'll take a technical look at five more toxic stocks to avoid this summer.
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.