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

2nd Apr '19

Serco (LON:SRP) made a messy cup (Oct 17-Jan 19) and a low handle around the 116p-108p area between 09.01.19-20.02.19. I didn't trade the handle breakout as I thought the fundamentals weren't very good.

EMIS (LON:EMIS) has formed a cup but no handle yet. 2018 adjusted EPS was 47.4p so forecast growth isn't great.

peterclothier

2nd Apr '19

Eland Oil & Gas (LON:ELA) handle breaking? There was some block trade earlier, Volume currently 8x average or thereabouts

unwise2

2nd Apr '19

Eland Oil & Gas (LON:ELA) has an awkard handle that is open to individual interpretation, is the breakout 129p or 135p?

I would prefer a neater handle setting up around the old high of 138-139p

Rusty2

2nd Apr '19

Some shares form a cup but no handle, they keep on rising, eg Google in 2004. I'm looking at EMIS (LON:EMIS) myself, yes growth is not great but maybe this disposal maybe change it.

peterclothier

2nd Apr '19

131 the closing high in January ? if so above that

peterclothier

3rd Apr '19

EVRAZ (LON:EVR) was a bit like that, barely paused just below 500 so not much of a handle, and then off and away. I sold too soon, it has taken the placing on 19th March in it's stride.

Vesuvius (LON:VSVS) has rather slow growth, although upgrades have gone through recently. It looks like a handle here. Not involved at the moment.

unwise2

3rd Apr '19

There are always going to be stocks that breakout of bases without pausing to create a low cheat/cheat/handle/high handle. MM's strategy is based on probabilities and stocks that come straight out of a base are more prone to pullbacks which could result in you being stopped out more often.

Rusty2

3rd Apr '19

There maybe a low cheat but no handle, it just takes off, the example Minervini gives in his first book on page 245 is Google, rose 600% in 38 weeks. I will have to look at some UK shares. It is a bit unusual at the moment with the big fall at the end of last year and then a bounce, many charts look similar.

Rusty2

5th Apr '19

I have been looking at some UK share charts and trying to work out where Minervini would have bought. First one is Solid State (LON:SOLI), I'm thinking he would be buying in at around 345p or is that too early? Next is Future (LON:FUTR), buying around 565p after the slight fall back? Next is Auto Trader (LON:AUTO), I'm thinking around 480p or would he have bought in earlier? Greggs (LON:GRG) 1450p? Or would he not be buying any of these if he was trading in the UK market? Sorry I don't know how to copy the charts to here.

unwise2

8th Apr '19

When Solid State (LON:SOLI) set up a handle around 350p in Jan the vast majority of the base was under the 200dma and the 200dma had only turned up for 2 days, so it isn't consistent with MM's rules.

Future (LON:FUTR) set up a cheat at 345p (17.04.18) and handle at 366p (30.04.18). Another cheat formed at 466p (25.09.18), that trade would have failed. Final cheat was at 556p (04.02.19). I bought Auto Trader (LON:AUTO) at 464p (15.02.19) using MM's guidelines. Greggs (LON:GRG) hasn't set up correctly at any point.

FREng

8th Apr '19

Scisys (LON:SSY) may be worth watching. It has just made a six-month high and is getting close to an all time high that repeatedly failed some months ago. SSY is very illiquid.

Rusty2

8th Apr '19

OK thanks, yes I agree about Solid State (LON:SOLI) not sure why I picked that one. I'm struggling to see where Greggs (LON:GRG) is failing, it passes all my screen rules, is there not a pivot point at 1270p and then it break out above the previous high at 1400p? Yes the 200MA has not been positive for that long but Minervini says MAs are the least important of his rules.

unwise2

8th Apr '19

Minervini says MAs are the least important of his rules.

I've never heard Mark say that, the one rule I have never seen Mark bend is buying a stock under its 200dma.

At 1270-1290p Greggs (LON:GRG) 150d was still under the 200d.

llwydiaid

8th Apr '19

How about SSP Group (SSPG)? It went up over 100% in 2017 and spent 2018 consolidating. It tried and failed to break out end of September 2018. Is it re-setting for another breakout with the 50d MA above the 200d which is just about rising. Earnings estimates sem to be improving strongly although the Stocko growth rate looks a bit pedestrian.

Rusty2

8th Apr '19

I have read it a few times recently, probably on twitter or in his interviews. Not saying he is buying under 200MA though.

Greggs (LON:GRG) past 200MA around 1130, 150MA past about 1500p.

Rusty2

8th Apr '19

SSP (LON:SSPG), is less than 30% above the 52 week low, in fact it is only just above 20%. Broker forecasts have been increased recently. Think it is still too early.

monions

8th Apr '19

I would agree (LON:GRG) looks like it's in a phase 2 uptrend.

It's only passed momentarily below its 50MA since July18 (that was early Oct). All the MAs have been stacked correctly and rising since 19th Jan. This isn't a breakout, but there have been several consolidation areas where you could have used the breakout techniques at 1400, 1600 and 1800. In fact it has a sticky relationship with round whole numbers. It also seems to pull back to the 21EMA and then move on upwards.

I'll take a look at this if it pulls back to the 21EMA on low vol.

Albertos

8th Apr '19

Scisys (LON:SSY)

Seems to be becoming more liquid if today is anything to go on. Needs to break 295.

Quite like the look of Eland Oil & Gas (LON:ELA) - but needs to break higher - not sure it will this time round - but a good one to keep an eye on.

llwydiaid

8th Apr '19

I take your point about SSP(SSPG) not being at least 30% above its 52 week low. However, the consolidation period has been very long - around 15 months so far. It's over 100% above it's two year low which might be more relevant. Time will tell!

llwydiaid

8th Apr '19

Games Workshop (GAW) just breaking out of a 6 month rectangle type consolidation and crossing above its 200d MA. Very tight VCP pattern over the past week with decreasing volume. We'll see what happens tomorrow.

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Trading U.K stock market using Mark Minervini strategy

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Unwise2

1516 comments

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