Roof Leaker To Watch: VF (VFC)

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.

Trade-Ideas LLC identified VF ( VFC) 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 VF as such a stock due to the following factors:

  • VFC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $151.3 million.
  • VFC has traded 463,494 shares today.
  • VFC is trading at 1.55 times the normal volume for the stock at this time of day.
  • VFC 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 VFC:

V.F. Corporation designs, manufactures, markets, and distributes branded lifestyle apparel, footwear, and accessories in the United States and Europe. The stock currently has a dividend yield of 1.8%. VFC has a PE ratio of 3. Currently there are 16 analysts that rate VF a buy, no analysts rate it a sell, and 4 rate it a hold.

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