It's time to sell stocks that are seeing inventory pile up at the same time as consumer demand slows, according to Adam Parker of Trivariate Research. "Inventory levels are a growing problem: For large cap stocks, inventory-to-sales is near all-time highs," wrote Parker, who was formerly the chief U.S. equity strategist at Morgan Stanley. Meanwhile, sectors where the firm is not worried about inventory levels are the energy and metals and mining industries. The firm identified companies with high inventory, high capital expenditures and declining revenue growth over the next year. Consumer staples stocks have inventory-to-sales levels that are nearing all-time highs, the note said.

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