Sometimes it takes a strong market to reveal which names are stocks to sell. The S&P 500 keeps setting new records — closing above 1900 for the first time ever in late May — but that hardly means every single constituent of the broad-market index is participating in the fun.
Indeed, plenty of stocks are well below their 52-weeks highs — never mind their all-time highs — and look to have more weakness ahead. A stock with deteriorating technicals even as the market marches into uncharted territory is not a bullish sign. By dint of that alone, you should consider certain names to be stocks to sell.
Other technical indicators are flashing warning signs, too. Whether it’s price momentum or seasonality, these stocks aren’t going to help your portfolio in the near future — and that’s a big shame heading into this time of year.
After all, June-July is actually a decent period for market performance. In such an environment, any broad index fund will allow you to participate in the gains. If you have any hope of actual outperformance, you need to prune stocks to sell from your portfolio now, or they’ll act as a drag on your returns.
When the technicals look as weak as they do on these names, they’re stocks to sell. Here are five stocks to sell for the month of June: