SL Green Realty (SLG) Is 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 SL Green Realty ( SLG) 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 SL Green Realty as such a stock due to the following factors:

  • SLG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $82.5 million.
  • SLG has traded 228,151 shares today.
  • SLG is trading at 15.03 times the normal volume for the stock at this time of day.
  • SLG 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 SLG:

SL Green Realty Corp. is a real estate investment trust (REIT). The firm engages in the property management, acquisitions, financing, development, construction, and leasing. It also provides tenant services to its clients. The firm invests in real estate markets of the United States. The stock currently has a dividend yield of 2%. SLG has a PE ratio of 56. Currently there are 6 analysts that rate SL Green Realty a buy, no analysts rate it a sell, and 8 rate it a hold.

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