TD Ameritrade (AMTD) Spotted As Roof Leaker Today

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified TD Ameritrade ( AMTD) as a "roof leaker" (crossing below the 200-day simple moving average on higher than normal relative volume) candidate. In addition to specific proprietary factors, Trade-Ideas identified TD Ameritrade as such a stock due to the following factors:

  • AMTD has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $69.3 million.
  • AMTD has traded 565,327 shares today.
  • AMTD is trading at 2.27 times the normal volume for the stock at this time of day.
  • AMTD crossed below its 200-day simple moving average.

'Roof Leaker' stocks are worth watching because trading stocks that begin to experience a breakdown can lead to potentially massive losses. Once psychological and technical resistance barriers like the 200-day moving average are breached on higher than normal relative volume, the stock may then be subject to emotional selling from investors that can continue to drive the stock lower. Regardless of the impetus behind the price and volume action, when a stock moves with weakness and volume it can indicate the start of a new, potentially dangerous, trend.

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More details on AMTD:

TD Ameritrade Holding Corporation provides securities brokerage services and technology-based financial services to retail investors, traders, and independent registered investment advisors (RIAs) in the United States. The stock currently has a dividend yield of 1.5%. AMTD has a PE ratio of 22.4. Currently there are 11 analysts that rate TD Ameritrade a buy, no analysts rate it a sell, and 4 rate it a hold.

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