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!

Monday, February 27, 2006

Five Month Triple Top Breakout?

Ready Mix (RMX) was a stock that we started to target after the IPO last fall. We posted a case study on the member’s section of MSW on 9/20/05 with fundamental analysis and detailed chart analysis. The most interesting piece of the chart analysis was the breakout area that we targeted in September of 2005:

September 6, 2005 (first daily screen appearance):
RMX – 15.78, new IPO that provides ready mix to construction projects near Las Vegas.

September 10, 2005:
RMX was mentioned on a Secondary watch list on the Weekly Screen

September 17, 2005:
RMX makes the official watch list on the weekly screen at $16.60… Here were our comments:
“Young IPO that was mentioned last week and studied this week. The breakout would be a move above $17.50 on above average volume.”



As we start to watch Ready Mix (RMX) once again, we have come up with the exact same breakout point that we targeted five months ago before the recent basing pattern. The buy was never signaled back in September and I am not sure if it will happen this time around either but it was not a coincidence that the stock reached $17.50 intraday today and then retreated during the afternoon hours.

Take a look at the three charts posted in this blog:
The first is a combo from September 21, 2005 as the stock was just debuting on the exchanges as an IPO from August.

The second chart is from today as the stock is about to complete a five month basing pattern with the EXACT SAME TRIPLE TOP BREAKOUT from September.

The third chart is the Point and Figure that has the chance for a triple top breakout (starting back in September).

If the stock breaks-out from this triple top breakout, I would have to believe that I was the first one to call the buy back in September 2005 (I am joking with this statement).

Ratings in September 2005:
EPS: 79
RS: 92
Industry Group: 40 out of 197

Ratings today (2/27/06):
EPS: 95
RS: 84
Industry Group: 66 out of 197






Piranha

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