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

monions

8th Apr '19

I regularly trade Games Workshop (LON:GAW) . It's been in the trading range of 28 to 32 for quite a few months. I don't believe it fits the trend template as the MAs are all stacked in reverse. So that would discount it for now. Also I think the way it moves with in the range doesn't show a lessening of volatility. At a push it could be a Wyckoff pattern with the last lows of March a possible spring. If so it could then breakout of the trading range. Having said that, it did push above 3200 today at the close, but volume is still below average for it to make a sustained break (all IMO). We will see tomorrow.

unwise2

9th Apr '19

5cac53db11ad0Chart-mission-marketing-932

It feels like the majority of stocks setting up are small cap, fairly liquid with large bid/offer spreads. The latest example is Mission Marketing (LON:TMMG), it has set up a great looking VCP in a 4 month base and has reported good earnings this morning. It has gone to a new 10yr high on double 50d average volume in only 1 hour.

Bid offer is 66/70p but on level 2 trades are currently 66.6/68.75p.

llwydiaid

10th Apr '19

Mission Marketing (TMMG) came through my screen but a 5% spread makes it impossible to have a tight stop loss. It also seems to make its big moves on result days e.g. 19/9/18 and 10/4/18 - too much of a gamble for me. I'm not sure how approriate these small news driven shares, off the institutional radar are for the Minervini method.

unwise2

10th Apr '19

I agree a large bid/offer spread makes trading difficult but I took a small position anyway. The volume ended up over 12 times previous 50d average and 24% EPS growth versus a trailing P/E of less than 9 looked too good to miss.

Mission Marketing (LON:TMMG) isn't completely off the institutional radar, 2 companies have taken 5%+ positions in the past 12 months.

llwydiaid

10th Apr '19

Re Mission Marketing (TMMG). Are the Stocko past revenue figures correct? They show revenue suddenly halving between 2017 and 2018 but the eps increasing significantly. However, the final report talks about a 13% increase in revenue. Confused!

Howard Adams

10th Apr '19

Hi

Ref Mission Marketing (LON:TMMG) ... these are the institutional holders listed in the IC profile. I noted the quite new entrants (apologies, not a great cut & paste but I think you will work it out).

Institutional shareholders 22.63% Per cent of shares held by top holders

Holder Shares % Held

Herald Investment Management Ltd. as of 31 Dec 2018 5.56m 6.60%
Lazard Fr�res Gestion SAS as of 31 Jan 2019 5.33m 6.32%
Polar Capital LLP as of 16 Apr 2018 4.50m 5.33%
Cavendish Asset Management Ltd. as of 28 Feb 2019 1.98m 2.34%
Harwood Capital LLP as of 31 Mar 2017 1.73m 2.05%

Data from 31 Mar 2017 - 28 Feb 2019.

I hold small amount.

Regards
Howard

unwise2

15th Apr '19

Another stock I have bought recently is Topps Tiles (LON:TPT), my buy is a little bit early (200d trending up for 10 days) but I liked the look of the chart. I purchased as it broke above 76p.

5cb461419c33cChart-topps-tiles-1532019.p

peterclothier

16th Apr '19

Charter Court Financial Services (LON:CCFS) Looks like a pretty text book cup and handle (only just noticed it). The Stockopedia data for EV and Mkt cap look incorrect.

unwise2

16th Apr '19

Agree Charter Court Financial Services (LON:CCFS) has created a cup and handle pattern, I haven't yet taken a position because a large part of the cup was formed under the 200d and the 150d is below the 200d and has been for some time. Might still work.

monions

16th Apr '19

Charter Court Financial Services (LON:CCFS) - this is a little more complicated as they plan to merge with OneSavings Bank (LON:OSB). Although it was already moving up nicely before the 14th March announcement. Both charts look very similar having both broken up again in the last week. OneSavings Bank (LON:OSB) is slightly behind on the MAs, the 50 is only just moving up above 200 today and 150 lagging behind.

llwydiaid

16th Apr '19

Frontier IP Group (FIPP) has just appeared in my screen and it looks to be forming a handle after rising strongly through the sell off at the end of 2018. The CEO sounds very positive after the annual results.
https://twitter.com/smallcappick/status/1112808373400035328
Stocko however has it down as a momentum trap and is in a short screen. We shall see,

By the way, is there any guidance on putting charts on the thread and how to do the blue coloured name links?

unwise2

16th Apr '19

By the way, is there any guidance on putting charts on the thread and how to do the blue coloured name links?

Put a £ in front of the stock code without a space. To attach a chart open the text editor and click the landscape symbol, then add the chart you have saved as an image.

llwydiaid

16th Apr '19

Frontier IP (LON:FIPP) - this is the chart. Thanks for the guidance.

unwise2

17th Apr '19

5cb6e9b1dccffChart-frontier-ip-1732019.p

Frontier IP (LON:FIPP) is on my watchlist. The current low handle is just over 10%, ideally it needs to form another tighter handle. The base is long but the pullback was large at 45% and it's yet another illiquid stock, 50d average volume is 30,461 which is approx £26-27,000. The attached chart is a weekly.

llwydiaid

17th Apr '19

£FIPP - an interesting point about the chart is that following it's annual results (15/11/18) it gained nearly 20% over the following month whilst the market was in free fall. Surprisingly this rise was also on very thin volume. It hopefully suggests that it's a very strong stock.

unwise2

24th Apr '19

EI (LON:EIG) has formed a cup and handle over the past 3 months and looks like it is breaking out on lower than average volume. Earnings growth is low but last trading update was upbeat.

Albertos

24th Apr '19

Haven't seen a mention of Games Workshop (LON:GAW) (I hold). Don't know much M. stuff but currently looks like a break-out to me.

Be interested in your comments either way. I'm going to hold no matter but I'm beginning to get into the TA stuff.

Phil

unwise2

25th Apr '19

The base Games Workshop (LON:GAW) created was under the 200dma for a long time. It did break out of the 2750-3250p trading range but I don't consider it a typical MM setup. The chart now looks like a large cup.

Ramridge

25th Apr '19

Guys -
MM tweeted the following last week.

@markminervini
Apr 17
More
Sold most of my stocks - nailed down profits into strength - stopped on my losers - very light exposure - only a small handful of longs and one short remain in my account.

He is expecting a general pullback before a bullish push ahead.

This is of course his take on the US stock market, but my experience says the same is probably true for the UK. So I am still deep in cash waiting for better MM set-ups to emerge.

FREng

26th Apr '19

Mission Marketing (LON:TMMG) seems to be a continuing momentum trade. I bought a few recently at 76p. It has a PE below 10 and a covered dividend. Views welcomed.

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Trading U.K stock market using Mark Minervini strategy

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Unwise2

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