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

25th Jun '19

Good call on £RNX , but what happened to fundamentals!!

"Some of the best trades from this setup can develop as unexplained strength. Therefore this is the only situation I will enter with a dearth of fundamentals." First book pg 254.

Mark has said many times on his MPA service he doesn't care about fundamentals in a PP setup.

FREng

25th Jun '19

Porvair (LON:PRV) cup-and-handle?

unwise2

25th Jun '19

Porvair (LON:PRV) has formed a messy cup and low handle but the handle was 12% deep and a large part of the base was formed under the 200dma. Chart is a weekly.

llwydiaid

26th Jun '19

Solid State (LON:SOLI) looks interesting with results in a week's time. It went from 400 to 500 in a matter of days in April.

unwise2

26th Jun '19

5d1365d2247daChart-solid-state-2652019.p

I was tempted to buy Solid State (LON:SOLI) back in Jan at 352p when it formed a tight handle but I didn't because the 200dma was still in a slight downtrend.

andrea34

26th Jun '19

I'm happy to see you flagging up Solid State (LON:SOLI) - I got involved at 434 in late April, so hoping for good things in the results. If all okay, the rating looks pretty undemanding to me.

peterclothier

28th Jun '19

£TM17 looks like it is breaking a IPO base that looks like a cup and handle with an extra smaller handle in the last 2 weeks or so.

Decent volume up the right side after "ahead" guidance on 18th June.

5d15fd779e760TM17-Daily-2019_06_28-12h42

unwise2

28th Jun '19

TM17's chart looks interesting but it poses a question, when does an IPO stop being an IPO and the normal stage 2 rules apply? It's been listed for more than 200 days and the 150dma is below the 200dma and the 200dma has only just turned up slightly, so it wouldn't qualify as a stage 2 stock.

stock_Hunter

28th Jun '19

Most of the above-discussed stocks ( SOLI, TM17,PRV etc ) spread is too wide.....It is not trading stocks.....Highly appreciate more inputs from FTSE 350 stocks
some of the good trending stocks
UDG,HALMA, DUNLM,MONY, AHT etc

peterclothier

28th Jun '19

Reasonable question, it isn't in stage 2 at present. I am flexible if it ticks most of the boxes, so I already have a position and will add if it pushes up.

peterclothier

28th Jun '19

Informa (LON:INF) ?

unwise2

28th Jun '19

some of the good trending stocks
UDG,HALMA, DUNLM,MONY, AHT

As the title suggests I set up this thread to discuss Mark's methods applied to U.K stocks, none of the stocks you list are currently setup to be bought according to the principles/rules Mark outlines in his books. Moneysupermarket.Com (LON:MONY) and Halma (LON:HLMA) have in the past few months set up buying points (which I bought) but they are both now extended from their bases.

Those stocks may qualify for a different type of trading but I would like to keep all discussion on this thread consistent will MM's rules to avoid "style drift".

FREng

28th Jun '19

Apologies if this doesn't fit MMs rules (I'm still struggling ... ) but is it too late to get aboard Judges Scientific (LON:JDG) ?

dmjram

28th Jun '19

Judge's meets the basic trend template - 150 and 200 MA in uptrends, price above both plus 50MA etc. so it would pass the initial test.

It broke out from a low cheat pivot on 7th June (several days of tight price/volume action) from a c8 week base which look like a base on base to use his/O'Neil's terminology. It would now be defined as an extended stock though (too far away from the base pivot) under MM's rules and not one he'd be interested in at present.

unwise2

1st Jul '19

TM17's chart looks interesting but it poses a question, when does an IPO stop being an IPO and the normal stage 2 rules apply?

I sent a copy of TM17's chart to Mark (via his assistant) to get an answer to my question. Mark's opinion is that TM17 has been trading too long to be considered an IPO base, however it has created a primary base that could be traded if it broke above 295. Caution was advised for position sizing because the stock declined 41% and the 150d hasn't yet crossed the 200d which means this isn't a grade A setup. His opinion was based purely on the chart.

ddinksdadd

1st Jul '19

Has anyone managed to produce a screen for this type of trading, or does the site not allow TA screening?

HumourMe

1st Jul '19

Has anyone managed to produce a screen for this type of trading, or does the site not allow TA screening?

You can get part way there using moving average and price conditions such as below:

Depending on how many get through these can be toggled to see their impact/effect.

However, several additional criteria are fuzzier (such as the fundamentals, volume and pattern set up).

There are also several approaches described (leaders, power play, code 33) each of which need supplementary screens that are more difficult to exactly emulate, but they can be used as checklists. However, requiring quality to be better than sector or above a threshold, isn't a bad approach IMO.

I also add spread and market cap > 100m to my Minervini screens and end up with very few candidates ...

llwydiaid

2nd Jul '19

Solid State (LON:SOLI) - should have heeded Minervini advice of not buying too close to results, however good the chart looks!

unwise2

2nd Jul '19

I have bought shares with about a week to go to results before to see if I can get a profit cushion. Since Solid State (LON:SOLI) didn't provide any cushion I sold my small position yesterday afternoon.

Rusty2

2nd Jul '19

Yes quite a few members have produced screens to simulate MM trading.

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Trading U.K stock market using Mark Minervini strategy

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Unwise2

1516 comments

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