Two Stocks to Sell Immediately – and Two to Buy

The markets are continuing to struggle, with all three major indexes only managing tiny spikes and then falling again. "One step forward, two steps back," as the saying goes.

Stocks in almost every sector are under siege. A recovery is on the way, but it's probably going to take longer to get there than anyone wants.

In times like these, the smartest thing to do is play defense.

For a decade, we've had one of the best bull markets in the history of equities, which provided fertile ground for a lot of people to make a lot of money on "high-risk, high reward" moves - growth companies, IPOs, bottom-fishing, and so on.

But that strategy isn't going to work anymore. The best portfolio for the current market is one that focuses on quality, reliable companies with strong fundamentals. High revenues, solid profit margins, good net income available to common shareholders. Economics 101.

Those are the companies that are going to benefit most from the eventual rebound, while firms whose valuation is based on more speculative factors may never get back up to their previous highs.

So, I'll tell you straight up: If you've got positions in that latter, speculative category, it's time to sell. Take whatever profits you can, and rebalance your portfolio for the coming storm.

I've got four picks for you today - two to buy and two to sell - to show you exactly what to look for when you're shifting your holdings around.