Trading U.K stock market using Mark Minervini strategy

Friday, Dec 14 2018 by
61

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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Disclaimer:  

As per our Terms of Use, Stockopedia is a financial news & data site, discussion forum and content aggregator. Our site should be used for educational & informational purposes only. We do not provide investment advice, recommendations or views as to whether an investment or strategy is suited to the investment needs of a specific individual. You should make your own decisions and seek independent professional advice before doing so. The author may own shares in any companies discussed, all opinions are his/her own & are general/impersonal. Remember: Shares can go down as well as up. Past performance is not a guide to future performance & investors may not get back the amount invested.


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802 Posts on this Thread show/hide all

llwydiaid 9th Jun 543 of 802
3

Mark Minervini's Twitter comment on Friday:

"The market is in the process of setting up the best buying opportunity since Nov. 2016. There's still some work to be done, but you must be prepared so you are ready when opportunity strikes."

Is it the same here??

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BH1991 9th Jun 544 of 802
9

In reply to post #482316

The NASDAQ Composite had a Follow-Through day on Friday, which is a signal the market has bottomed and a new rally is set to begin. This is defined as a major index increasing at least 1.4% with greater volume than the day before. It's measured from the when the market makes a new low and the follow through day should happen between 3 and 7 days thereafter.

It's important to note that although a stock market rally has never started without a follow through day, not all follow through days lead to a new market rally. As we all know, the best buying opportunities follow a market correction.

5cfd341bedad8Nasdaq_Comp_FFTD.PNG


However, when looking at the major UK indices, we are yet to endure a follow through day. So in the short term, trend followers should be cautious. Until a follow through day materialises, then I wouldn't get aggressive.

Furthermore, a good sign of market health is when institutions invest in "riskier" assets (e.g. small/micro caps). When you look at the AIM All Share and FTSE Small cap index, they are very much in a downtrend, below their down-trending 200DMA.

5cfd3e901741cAIm_100.PNG


At the end of the day, we don't know whether an excellent buying opportunity is around the corner for UK shares, but broad market participation is needed, especially in smaller names for this to happen. 

However, this should be used as a secondary indicator and the focus should always be on individual names. 

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unwise2 10th Jun 545 of 802
3

In reply to post #482336

5cfe0e57ce0ceChart-ftse-aim-all-share-in

5cfe0c391e33aChart-ftse-aim-all-share-in

I agree with everything BH1991 has said. I like to use the Aim All share to get a feel of the U.K market since it is the broadest index. When the market sets up a great buying opportunity it looks similar to a stock setting up. Back at the end of 2016 AXX set up a VCP and then went from 830 to 995 with very little volatility which is great for traders using stops. Compare the chart attached to the current one.

Just because the market hasn't set up yet doesn't mean you shouldn't buy anything, you just have to be careful as volatility it going to be greater.

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maffs0 10th Jun 546 of 802
1

I have been looking recently at Boohoo (LON:BOO) which seem to be tightening up nicely. If you look at the 2 or 5 year weekly chart, it looks like a nice cup with handle. It is emerging from a very long base and it continues to have good growth figures going forward.

My trading plan is to buy a 1/4 position at 235, another 1/4 at 245 and a final 1/2 if it breaks out at 250.

M.

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llwydiaid 11th Jun 547 of 802

In reply to post #482411

Re FTSE AllShare Index. The Fibonacci retracement levels seem to be working here - it bounced off the 61.8%, rebounded and tested the 50% and is now around the 38.2%, hopefully on it's way back to the top.

5cff60b39dd6dAXX.png


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pgs501 11th Jun 548 of 802

Hi all,

Apologies if this has been talked about before but MPAC (LON:MPAC) appears to be setting up nicely. Given this looks to be a turnaround situation we can largely ignore the 200p+ sp 12 months ago but following their fall last summer the sp has had 4 breaks during a generally increasing price. It really looks like a stage 2 from the start of the year.

1st 19 Sep - 26 Oct it dropped back 24.5%
2nd 8 Nov - 1 Jan it dropped back 26.1%
3rd 6 Mar - 30 Apr it dropped back 15.2%
4th 13 May - 10 June it dropped back 8.8%

Looking at the volume during the past year you have had very high volume green days followed by low volume reds making the sp drift down.

Today it is rising nicely due to a very positive update on its pension liability (incidentally this could be a nice read across to other big deficit co's). Without this pension issue, this company is very cheap on a fundamental basis (e.g. P/E is 7.3, P/B is 0.8) but had previously always been held back by the huge pension liability.

I am definitely no expert in MM but it seems to be ticking a lot of boxes to me. Personally, I would want to see the sp get above the 177p high but at that point, it will look really good. With that in mind, I have taken a small position today.

Am I missing something important?

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unwise2 11th Jun 549 of 802

In reply to post #482956

4th 13 May - 10 June it dropped back 8.8%

Looking at the chart it looks like MPAC (LON:MPAC) dropped 13%.

5cffca3a03ecfChart-mpac-1152019.png
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pgs501 11th Jun 550 of 802

Ah sorry unwise I had been using simple day ends rather than high & low points within the day. The day ends gave a drop from 177 to 161.5.

As an aside what is the filter you have included for the intraday high/low bars?

Thanks, Pete

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nicobos 11th Jun 551 of 802

In reply to post #479131

Thanks Unwise - Moneysupermarket.Com (LON:MONY) has broken out nicely from its long base so taken a position.

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unwise2 12th Jun 552 of 802

In reply to post #483001

As an aside what is the filter you have included for the intraday high/low bars?

I'm not sure what you are asking, my charts are just standard candles which show open/high/low/close. The black lines have been added manually.

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peterclothier 12th Jun 553 of 802

In reply to post #482466

@ maffs0 Boohoo (LON:BOO) looking good after results dip appears to have been bought.

dotDigital (LON:DOTD) looks like it is going to make a closing high today after 18 months of sideways

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Mechanical Bull 12th Jun 554 of 802

In reply to post #482956

One thing missing is the lack of institutional buying. According to MM this is usually needed to sustain a share price above the new high.

Blog: Mechanical Bull Blog
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unwise2 13th Jun 555 of 802

In reply to post #483406

dotDigital (LON:DOTD) looks like a great VCP, because of where the moving averages were earlier this week my screeners missed it. It has now moved away from the pivot point of 102/103p so I'm not going to buy any.

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llwydiaid 13th Jun 556 of 802

IG Design (LON:IGR) weekly chart over the past 4 years. Large volume coming in today following Tuesday's results.

5d023717ebe83IGR.png


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unwise2 13th Jun 557 of 802
4

In reply to post #483651

I took a position in IG Design (LON:IGR) today when it broke above 621p, the base goes back to Sept 18.

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nicobos 13th Jun 558 of 802
2

In reply to post #483671

IG Design (LON:IGR) looks like a good setup!

Unfortunately, the large volume seems to have come from sizeable director sales announced after the close today so will be good to see how the price responds on open tomorrow morning.

If the dip gets bought up quickly then it's a good sign the breakout will hold !

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llwydiaid 13th Jun 559 of 802

IG Design (LON:IGR) pity about those director sales. However the I see the total volume today was over 10million shares whereas the director sales totalled less than 1 million. Hoping for a rebound tomorrow.

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llwydiaid 13th Jun 560 of 802
1

IG Design (LON:IGR) sorry my mistake. It was 10 million pounds not shares, of which around half was probably the directors.

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PLS1nve5t 13th Jun 561 of 802

IG Design (LON:IGR) have been banging their head against 617 on 7 occasions in 10 months, good luck this time for a breakthrough....

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fwyburd 14th Jun 562 of 802

IG Design (LON:IGR) I've been watching this too but my chart shows the 200MDA marginally above the 100MDA. Does this negate the set up? Interested to hear others views.
cheers
Francis

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