Historically speaking, September is the worst-performing month of the year for stocks, but this year, it turned in an outstanding performance. Due to stimulation from the Fed, Europe, and China, the S&P 500 rose 2.4% with energy, technology and telecommunications sectors leading the way, each up over 7%.
Following a major technical breakout, stocks usually experience a short (one-to-three-week) consolidation and then pick up the trend by shifting to sectors that lagged. But stocks that have totally failed to participate in the market’s five-month rally are not likely to recover.
This month, all of the stocks on the sell list are in serious fundamental and technical trouble or are overvalued with certain political risks. Here is our list of stocks to sell in October: