Trading U.K stock market using Mark Minervini strategy

Friday, Dec 14 2018 by
46

Mark has been interviewed by Stocko a couple of times and from some of the comments on various threads there appears to be a few of us using his methods to trade the U.K stock market. I thought it would be useful to have a dedicated thread where we can discuss how well its working.

Personally I have been in cash at least 50% since the end of May and at 95-100% since early October. Getting out of stocks as they roll over has protected me from any real damage.

I'm struggling to find many setups I want to buy so I am developing my "sit out power"

How is everyone else doing?



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397 Posts on this Thread show/hide all

unwise2 15th Mar 378 of 397

In reply to post #458343

Thank you for initiating this thread I read it avidly and follow up on lots of the suggestions.

Glad you like it and that it's useful.

 I do find useful with having the more comprehensive MM screener is that if I have competing investment options the 25 tests help me to see quite clearly which might be the better option.

You might already do this but I hope once you have a shortlist you check the companies RNS's to check EPS historic figures versus what is listed on Stocko. Also forecasts can be very wrong, I made substantial gains on GAW when brokers were forecasting weak growth.


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Howard Adams 15th Mar 379 of 397

In reply to post #458353

Hi unwise2

With reference to your useful advice.

'You might already do this but I hope once you have a shortlist you check the companies RNS's to check EPS historic figures versus what is listed on Stocko. Also forecasts can be very wrong, I made substantial gains on GAW when brokers were forecasting weak growth.'

I do this a bit but not nearly enough I fear. I will enhance my pre-buy procedures to add this in. That said, I am not wholly guided by pure quants and do in addition dig into stock reports as well as the qual side of the businesses.

Thanks for the heads up.

Regards
Howard

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Glorenfeld 15th Mar 380 of 397

Augean (LON:AUG) has just broken out if a high tight flag/power play. Still got the tax issue in play, but chart trumps all when it comes to power play, right?

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unwise2 15th Mar 381 of 397

In reply to post #458438

You would have to stretch the rules to make it a power play as it has taken well over three (or 5 depending on where you measure 50p) months to double. The recent pullback is tight though. Personally I haven't traded Augean (LON:AUG) because of the risk of the tax issue potentially causing a large gap down unexpectedly.

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unwise2 Mon 10:10am 382 of 397
1

5c8f6e9d92057Chart-d4t4-solutions-182201

D4T4 broke out of a classic looking VCP on Friday with more than double average (50d) volume and is having another good day.

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dmjram Mon 10:15am 383 of 397
1

In reply to post #458943

Looked at that too but as is all too common on UK small caps, the spread was way too wide for a risk limited stop at the level I like to set.

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psin Mon 10:41am 384 of 397

In reply to post #458943

unwise2,
having just increased my holding I was about to call people's attention to D4T4 when I saw that you'd beaten me to it. Nice one. The diminishing volume prior to big rises is classic MM. He'd probably be thinking about buying about now.

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mrosbiston Mon 12:37pm 385 of 397
1

In reply to post #457573

sold out of YETI into the close on friday - fill was 29.60 (entry was 24.52)
This might have a way to run, but i've been selling into strength in 2019 (my post trade analysis has told me this has been the right thing for me - that might change)

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llwydiaid Mon 3:36pm 386 of 397

I notice that most contributors here use screens based mainly on fundamental measures and then look at the charts. I do it the other way round, scanning the top 1000 UK stocks on Sharescope with a filter based on Minervini's Trend Template (pg 79 first book) then checking out fundamnetals on Stocko. Out of 1000 stocks, over 200 passed the filter at the end of last May, but the number decreased down to 35 at its low point in October/December. The number picked up in February, from 50 to the current 73. Around half ot these have spreads of >2% which I tend to avoid, thus leaving around 30, and most of these are now too extended. I keep a weekly chart of the number in Excel, but it doesn't just "cut and paste" into this box!

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stock_Hunter Mon 4:09pm 387 of 397
1

AJ Bell(308) - Looks like good breakout ?

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unwise2 Mon 4:27pm 388 of 397
1

In reply to post #459148

I pointed out AJ Bell (LON:AJB) in post 365, it is a breakout and it might do well but it's not one I have bought.

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herbie47 Mon 7:18pm 389 of 397

Keystone Law (LON:KEYS) has broken out today up 5.6%.

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peterclothier Tue 8:45am 390 of 397
1

In reply to post #459138

@llwydiaid I do something similar, using the trend template plus two lower fundamental screens so as to not constrain things to much. ROCE of >15% and trailing EPS of >15%.. It still produces only 25 stocks in the UK.

MM treats his trend template as non negotiable, so it makes sense to start with that as a filter.

The fundamental side can be more flexible. On O'Neil's Marketsmith they talk about 7/10 for screens as being acceptable if the technicals are right.

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llwydiaid Tue 9:41am 391 of 397

Microfocus (MCRO) meets the trend template rules and looks as if it's about to go higher before next week's AGM. Fundamentals also look good according to Stocko algorithms.

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unwise2 Tue 1:36pm 392 of 397
1

In reply to post #459138

scanning the top 1000 UK stocks on Sharescope with a filter based on Minervini's Trend Template

Does Sharescope have the ability to screen for a rising 200dma ?

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peterclothier Tue 4:08pm 393 of 397

@Unwise Has MM mentioned $IAC and one of it's investments $MTCH out of interest? They both appear to be in cup and handle patterns, although IAC's handle top is level with it's highs.

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llwydiaid Tue 4:58pm 394 of 397
1

In reply to post #459553

Yes, you can screen for rising moving averages in Sharescope. In the Data mining function you can set up a filter for the % change in moving average between two dates and set this at >0%.

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unwise2 Wed 8:35am 395 of 397
3

In reply to post #459618

I don't recall IAC/MTCH being mentioned recently, the handles look too deep at this stage.

Would prefer stocks on this discussion are U.K only, someone else could start a U.S MM discussion if they like.

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herbie47 Thu 11:36am 396 of 397
2

In reply to post #458943

£D4T4 has fallen back 2 days running.

Gamma Communications (LON:GAMA) has broken out, now 1000p, this would have been a good one to buy around 900p which would have been a new high, unfortunately not on my radar so I missed it.

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unwise2 Thu 12:21pm 397 of 397
1

In reply to post #460428

I saw Gamma Communications (LON:GAMA) but it never really calmed down, 70p intraday swings were happening in the handle, too volatile for me in the current market.

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