Sell These 5 Toxic Stocks Before It's Too Late
BALTIMORE (Stockpickr) -- Do you own one of these toxic stocks? If so, it's time to hit "sell."
Let me be clear: The S&P 500 looks strong right now, and a number of critical factors are pointing to a sustained rally for 2013. That said, not all names are participating in the upward momentum in stocks. And the ones underperforming the market right now are the same ones likely to stifle your stock performance for the rest of the year.
That's why today we're taking a technical look at five namesthat could be toxic for your portfolio this winter.
To be fair, the companies I'm talking about today aren't exactly "junk."
I mean, they're not next up in line at bankruptcy court. But that's frankly irrelevant; from a technical analysis standpoint, they're some of the worst positioned names out there 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 this Fall. 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 planning their stock execution.
So, without further ado, let's take a look at five "toxic stocks" you should be unloading in 2013.