Trading U.K stock market using Mark Minervini strategy

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14th Dec '18 by unwise2

1516 comments 109004 reads

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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About the Author

Unwise2

Premium Member

1516 comments

unwise2

29th Mar '19

I'm not sure how the trailing 12 month eps growth is 1.8%, but the 2019 end of year is 53% growth, with 31 March year end.

This is another example of an error in adjusted earnings. Stocko lists 2018 normalised EPS as 38.6p but if you read the results RNS Telecom Plus (LON:TEP) state adjusted EPS of 55.1p. Forecast EPS of 59p means estimated growth of 7% for year end 31.03.2019.

Before buying anything based on growth forecasts you need to check the actual results.

Rusty2

29th Mar '19

Can he, I'm surprised at that, I'm sure he has a few brokers and with the size of his deals, I'm sure he can get better deals than we can, his costs will be proportionally much lower also, I lose about 4% every time I sell and buy a foreign share, so even if I hold I'm better off than selling and buying back. The US market is different for the UK, there results at out in the evening, then there are articles and prices before the market opens, the UK is a rush in the hour before the market opens.

dmjram

29th Mar '19

Page 108 of Mark's 2nd book:
"if I have a 10% profit on a stock then I could usually justify holding into an earnings report"

"holding into earnings is always a crapshoot"

Howard Adams

29th Mar '19

Hi Herbie

FWIW I bought small starter position in 4imprint (LON:FOUR) this AM, it scores well on my various screener tests. Also, the bulls seem to be present.

With Telecom Plus (LON:TEP) however I think there is a tussle with bulls vs bears so I'm watching how things develop on that one.

Regards
Howard

Aesurgenor

29th Mar '19

FWIW I bought small starter position in 4imprint (LON:FOUR) this AM, it scores well on my various screener tests. Also, the bulls seem to be present.

I bought some 4imprint (LON:FOUR) a few days ago after (belatedly) noticing it ticked all the boxes on my attempt at a MM screen.

I am just worried I might have missed the majority of the short term upside.

Rusty2

29th Mar '19

Hi Howard,
I went to buy some 4imprint (LON:FOUR) this morning but they were up 60p already so I have left it. Not been buying much recently but have added Diageo (LON:DGE) and Rio Tinto (LON:RIO), these are more a longer term hold, Diageo (LON:DGE) is a more defensive stock, both pass most of my Minervini screen rules. BHP (LON:BHP) is also on my screen, nice dividend as well. Anglo American (LON:AAL) is another one on my watchlist.

Howard Adams

29th Mar '19

Hi Herbie

I already have a bit of Diageo (LON:DGE). Rio Tinto (LON:RIO) also hit my tests a couple of days ago, I held off yesterday but took a start position today.

I have not looked at BHP (LON:BHP) or Anglo American (LON:AAL) recently. I will take a look.

Thanks for the heads up.

Regards
Howard

Howard Adams

29th Mar '19

Hi Herbie

Taking a quick look at BHP (LON:BHP) and Anglo American (LON:AAL). With my various tests, both are weaker than Rio Tinto (LON:RIO) at the moment so I'll just watch them for a while.

Regards
Howard

ISAallowance

29th Mar '19

I'm watching UP Global Sourcing Holdings (LON:UPGS) for a possible trade entry on a breakout - it is now close to a 52 week high since the previous highs have dropped out of the last year history, and looks to be setting up a nice base.

I already hold it on fundamentals.

ricky65

30th Mar '19

US stocks don't always release earnings after the close. They can also release earnings before the open.

Rusty2

30th Mar '19

Really, all the ones I've seen have been in the evening. Is that because some are listed in more than one market? Anyway I think it is a much better system than our 7am release time.

Rusty2

30th Mar '19

The chart looks good for UP Global Sourcing Holdings (LON:UPGS), I used to hold in 2017 fortunately I got out before the profit warning, the spread is a bit wide at the moment. Does Minervini have any rules about profit warnings?

JohnEustace

30th Mar '19

It’s a fairly even split between US companies releasing results after the close and before opening.
Releasing before the open is associated with greater volatility in the stock price.

http://www.cfo.com/financial-reporting-2/2018/01/whats-the-best-time-to-announce-earnings-announcements/

FREng

1st Apr '19

Any views on Volvere (LON:VLE) and the recent high? I hold.

Rusty2

1st Apr '19

Spread is often around 10% so not one for short term trading.

Rusty2

1st Apr '19

Thanks, but I don't really understand this cushion of profits argument, if your shares fall 15% in value, what difference does a previous profit make? I see this sort of comment quite a lot but a 15% loss is still the same in fact it is worse if your shares have gone up as you will have lost more money. It may make you feel better but at the end of the day it is what your portfolio is worth that matters.

Rusty2

1st Apr '19

I was just looking at the 52 week high screen I notice it is down around 25% since August 2018, so this bears this out about failed breakouts. THere are quite a few that are still soaring but there must many more that are failing. Some are breaking out but then soon falling back such as James Fisher and Sons (LON:FSJ). Seems many are taking quick profits.

An recent IPO which is doing well is £AJB

ricky65

1st Apr '19

Thanks for sharing that interesting piece. "The researchers hypothesize that the difference is explained by investors needing time to process the information before factoring it into trading activities". Makes sense.

FREng

2nd Apr '19

EMIS (LON:EMIS) is making new highs and has just sold a business to "to re-energise growth, including improving service performance and efficiency, growing its private sector enterprise business, and accelerating its technology roadmap." No position, but thinking about it.

FREng

2nd Apr '19

Has Serco (LON:SRP) formed a MM pattern?

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Trading U.K stock market using Mark Minervini strategy

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Unwise2

1516 comments

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