Market Talk with Piranha is currently moving to its new home at chrisperruna.com. The new site is up and running but many of the posts need editing as the images and stock charts did not transfer successfully (thanks blogger). I will post all new entries to both blogs – Thank you for your patience while I make this change!

Thursday, January 06, 2005

TZOO Buy Points

...I was asked by a member of this community on a message board about TZOO buy points. Here is the question:

When TZOO broke out of its cup with handle in April, what if you missed the pivot point. IF it is above my pivot point by 5% then I feel I am to late to jump in. I hesitate to buy into a stock when it pulls back a little. I know you recommend stocks even after their initial breakout if they have good volume support but what are some spots that you think would have made ideal entry points in TZOO after its initial breakout and why?

Two key buy points presented themselves for TZOO:

The end of June,– Breakout on largest volume of the year. You know I follow the overall trend rather than pure bases as IBD does. I found more opportunities and success with this method. I like to buy on New High breakouts!

Middle of August – Two consecutive breakouts on the largest volume of the year (two consecutive weeks). This volume was confirmed 2 weeks later with even larger volume and then again on the 3rd week from the middle of August with the largest weekly volume ever until the breakout in November.
November was another buy point but a reversal took place and the new shares should have been sold immediately to prevent further loss. Original positions would still be held as they would still be in the overall up-trend.

Since then, a wedge type formation has been forming the past several weeks. I have a case study about DHB that shows a wedge formation in action with a breakout. I am looking for a breakout above $100 on the largest volume ever; this would be another entry point!

NOTE: In traditional bases, a buy 5% above the pivot is no good. I am buying on the trend. A traditional base never formed with TZOO after May of 2004.

Piranha



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