Nordstrom (JWN) Marked As Today's Roof Leaker Stock

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 Nordstrom ( JWN) 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 Nordstrom as such a stock due to the following factors:

  • JWN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $94.8 million.
  • JWN has traded 151,726 shares today.
  • JWN is trading at 2.15 times the normal volume for the stock at this time of day.
  • JWN 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 JWN:

Nordstrom, Inc., a fashion specialty retailer, offers apparel, shoes, cosmetics, and accessories for men, women, and children in the United States and Canada. It operates through two segments, Retail and Credit. The stock currently has a dividend yield of 1.9%. JWN has a PE ratio of 21. Currently there are 9 analysts that rate Nordstrom a buy, 2 analysts rate it a sell, and 13 rate it a hold.

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