Stocks to Sell – CHE, CL, MDT, PDCO, SSL, TER

Clean these stocks out of your portfolio before the new year

Dec 5, 2011, 4:46 pm EDT | By Sam Collins, InvestorPlace Chief Technical Analyst

Sell Into the Santa Rally

U.S. stocks moved up late last month on expectations of a solid European plan that would provide for both stability and growth. But the blast-off could fizzle out since there is considerable political and technical resistance to overcome. The U.S. economy is making slow progress, and recent unemployment numbers are misleading because so many workers have fallen from the workforce.

As for the major stock indices, all show that stocks are entering an area of heavy resistance. Will a Santa Rally occur? Perhaps, but we may have already seen it since stocks have rallied more than 9% since Nov. 25. Sellers should use the rally as an opportunity to raise cash and dispose of non-performers.

Here is our list of stocks to sell in December: