It’s get harder and harder to find stocks to sell as we approach the end of the year. After all, we’re in the midst of the best three-month period for equities, and gains only accelerate over the course of the fourth quarter.
Indeed, the S&P 500 generates an average price gain of 0.7% in November, according to Yardeni Research. (October is good for 0.4% and December contributes 1.4%.)
At the same time, a disappointing year in stocks means investors are running out of time to put their 2015 performances in order. The broader market only recently turned positive for the year-to-date, and even then it’s up only about 1%.
As always, any tactical investor looking to outperform the market’s short term performance has to pare stocks from his or her portfolio to keep them from dragging on returns. When gains are so hard to come by, it’s more important than ever to make sure you cull the losers.
Fortunately, technical analysis and seasonality can help identify stocks to sell heading into the month ahead. Stocks raising technical warning flags always bear watching. And if they have a history of poor monthly performance, they are certainly at least candidates for profit taking.
After screening the market for large-cap stocks exhibiting technical and seasonal weakness, we identified these five companies as stocks to sell for November.
In no particular order …