So far, August has lived up to its reputation as one of the most volatile months on Wall Street. It’s that time of year when institutional investors in the U.S. and Europe disappear. As a result, thin market conditions make Wall Street more vulnerable to the antics of unscrupulous short sellers.
This, along with Turkey’s economic crisis, and the trade spat between the U.S. and China, have made for choppy market conditions. Just last Wednesday, the stock market sold off on fears that Turkey’s economic crisis could spread to other emerging markets. At one point, the Dow was down over 300 points in intra-day trading. But by the closing bell, the benchmark indices regained some ground.
The very next day, Wall Street had its best day in months. The benchmark indices surged on news that China was coming back to the negotiating table with the U.S.
And then there’s today. As I write this, the S&P 500 is breaking through new highs. Investors are now turning their attention to the release of the minutes from the Federal Reserve’s latest monthly meeting. The minutes will be released tomorrow afternoon at 2:00 PM EST, This is usually a market-moving event because it provides key insights into whether the Fed will raise interest rates in September.
For now, though, stocks are enjoying a nice summertime rally. This has given us an opportunity to sell underperformers into near-term strength. As we approach the historically weak month of September, now is a good time to trim any underperformers.
And after running through the Portfolio Grader data, I noticed some great selling opportunities in the large cap arena. The following stocks are rated as strong sells and sells, but have been trending higher in recent days. This means that you should be able to sell in to the strength and table off some profit over the next few days. Here are the six stocks that I recommend you sell now:
|Sell These Six Stocks Into Near-Term Strength|
|Company Name||Monthly Gain||Quarterly Gain||Quantitative Grade||Fundamental Grade||Total Grade|
|Allergan Plc||11.0%||23.7%||F||C||F (Strong Sell)|
|Celegene Corp.||6.8%||21.7%||F||C||F (Strong Sell)|
|Campbell Soup Company||4.2%||25.6%||D||D||D (Sell)|
|Regeneron Pharmaceuticals||2.1%||26.4%||F||B||D (Sell)|
|Spectra Energy Partners, LP||4.7%||20.1%||F||C||D (Sell)|
|Welltower, Inc.||5.0%||20.8%||D||C||D (Sell)|
If you’re interested in learning more about great selling or buying opportunities, check out my Portfolio Grader tool. With a few clicks of your computer mouse, you can rate all of your current holdings. It’s as easy as A-B-C!