Disney’s Stock Is Toxic

The big stock market averages are hovering around their all-time highs this summer, giving investors hope that stocks will tack on more points this June.

But all isn’t what it seems right now.

Sure, the big S&P 500 Index is up 9.8% on a total returns basis this year, but a very big chunk of the individual stocks that make up that big index aren’t participating in the upside in 2017. Case in point: despite the sizable rally in the S&P so far this year, approximately one in three S&P 500 components is actually down since the start of the year.

Simply put, the key to beating the market this summer isn’t finding the very best stocks to own; instead, the key is just not owning the stocks that could drop further from here. To accomplish that, we’re turning to the charts for a technical look at three stocks that are about to trigger sell signals (and when you should actually sell them).

Just so we’re clear, the companies I’m talking about are hardly junk–many of them have very strong businesses.

But that’s frankly irrelevant to what happens to their stocks; 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.

Here’s a look at three big stocks that could turn “toxic” for your portfolio in the near-term.