If you’re looking for stocks to sell, now’s the time to do it.
August is a sleepy month for stocks, typified by low trading volume and modest-at-best gains for the broad equity market. It’s almost like the calm before the storm where everyone is looking for stocks to sell. After all, September is the worst month for stocks, averaging a loss of 1% since 1928, and a loss of nearly 5% in every down September since then.
The S&P 500 has had a heck of a year. Its year-to-date gain of 7% is already better than most market strategists were projecting for all of 2014. Of course, markets do not go up in a straight line, and there’s every to think we’ll hit at least one bout of extended selling before the end of the year.
Whether we get a full-blown correction or not, it’s typical to see stocks suffer some broad-based selling at the end of August/start of September. And there certainly is no shortage of marquee names in the S&P 500 flashing signs of technical weakness right now. It’s as if they’re just waiting for the downdraft to begin. That alone makes them stocks to sell.
From breaking through support levels to a lack of upside momentum to poor seasonality, dozens of S&P 500 stocks are hobbled by weak technicals. After screening the broader market, we chose a handful of names we consider sells on a technical basis alone.
If you want to get ahead of the market’s imminent cooling off period, these are the five stocks to sell for August: