BALTIMORE (Stockpickr) -- All told, it's shaping up to be a pretty solid week for stocks. Between Monday's open and Thursday, the big S&P 500 has climbed 1.2% -- and even better, it took most stocks along for the ride. Almost 80% of S&P components are up so far this week.
But there's an important takeaway here. If four-fifths of the S&P are up, that must mean that another 20% of stocks are down this week. Some big-name stocks, such as Humana (HUM) or Oracle (ORCL), are actually down a lot. If 2015's relatively weak price action has taught us anything, it's the fact that underperformance can be both persistent and material.
And knowing which stocks to avoid can have impact on your portfolio's gains this year than knowing which ones to buy. That's why, today, we're taking a closer look at five toxic stocks you should sell in June.
Just to be clear, the companies I'm talking about today aren't exactly junk. By that, I mean they're not next up in line at bankruptcy court. But that's frankly irrelevant; from a technical analysis standpoint, sellers are shoving around these toxic stocks right now. For that reason, fundamental investors need to decide how long they're willing to take the pain if they want to hold onto these firms in the weeks and months ahead. And for investors looking to buy one of these positions, it makes sense to wait for more favorable technical conditions (and a lower share price) before piling in.