Trading U.K stock market using Mark Minervini strategy

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14th Dec '18 by unwise2

1516 comments 108971 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

Rusty2

12th Jul '19

Any views on IG Design (LON:IGR) that I think a few of us bought a while ago, I see it is now below the 50MA, it's down about 6%, is it worth holding or not?

unwise2

12th Jul '19

Tough to call on IG Design (LON:IGR), it appears to have bounced off support around 574p, its 2019 EPS growth was good but it appears to be stuck in a trading range after very briefly breaking out.

nicobos

12th Jul '19

Avast (LON:AVST) popped up on my watch-list as well. Just so many fake-outs and been quite volatile so I don't feel comfortable with this breakout.

Would feel better buying it on 30 MA week support line as it is in a nice stage 2 !

It's been slim pickings in the UK market for MM breakouts...macro uncertainty after the summer also means it's likely to be a challenging momentum market for a bit longer.

llwydiaid

12th Jul '19

I agree about the "slim pickings" and "hard penny" comments about the UK smaller companies market. I've had more success with international investment trusts e.g. Montanaro European Smaller Companies Trust (LON:MTE) which shot out of a lovely cup and handle accompanied by a closing of the NAV discount.

unwise2

12th Jul '19

Just so many fake-outs and been quite volatile so I don't feel comfortable with this breakout.

I've been stopped out a couple of times in the past year

To my eyes Avast (LON:AVST) has only formed one handle (end of Feb) that has failed in the past 12 months, the break out in May never formed a proper handle and failed immediately.

Albertos

12th Jul '19

Avast (LON:AVST)

I think this is simply moving up as and when positive news comes out. The market is still cautious given it's short quoted track record.

I bought some on the trading update in April, and to date I can't complain.

Phil

Glorenfeld

18th Jul '19

One I've mentioned before, but Trans-Siberian Gold (LON:TSG) is possibly setting up a Power Play/High Tight Flag.

Up 100% since Feb, or again since mid April. Flag starting at Jul 12th. No evidence yet that the pattern will complete, but if it gets back to the 85-87 range in short order, then I'd say it's looking pretty good.

andrea34

18th Jul '19

Sorry to be such an ignoramus, but what does "a Power Play/High Tight Flag" mean? I hope it's positive, as I've just bought them :-/

cidunn

19th Jul '19

Hi Andrea,

I came across this thread
https://www.stockopedia.com/content/minervini-power-play-242073/

"Essentially they are pure momentum plays with little regard to fundamentals.

To qualify the following criteria must be met:

1. Stock price up 100% in less than 8 weeks, usually after a period of dormancy.
2. Stock usually moves sideways 3-6 weeks with corrections of max 20-25%
3. Days before the breakout volume will contract considerably."

All the best, CID

Glorenfeld

19th Jul '19

Which just shows that you should refresh your memory from time-to-time, as I had extended the initial doubling period in my head! Now not sure that Trans-Siberian Gold (LON:TSG) qualifies, as the doubling took longer than the 8-weeks allowed.

I would also say that in the case of Trans-Siberian Gold (LON:TSG) , I think the fundamentals also look good (assuming gold doesn't tank).

unwise2

19th Jul '19

Now not sure that Trans-Siberian Gold (LON:TSG) qualifies, as the doubling took longer than the 8-weeks allowed.

Mark frequently says trading is an art not a science. The rules* he has written in his books are slightly fuzzy. If a stock moved up 95% in eight weeks or 100% in ten weeks that doesn't completely rule them out, it's up to the individual trader to decide how far they are willing to stretch the rules. The most successful power play I have traded so far took 13 weeks to double.

I don't really have an opinion on Trans-Siberian Gold (LON:TSG) as a power play, it's success is tied to what happens to the gold price.

* except maximum 10% loss and buying under the 200dma.

llwydiaid

22nd Jul '19

Blackrock World Mining Trust (LON:BRWM) another investment trust coming out of a cup and handle with room for the NAV discount to close.

mikelevie

22nd Jul '19

Agree with the observations of the UK being a hard penny environment at the moment. That said, ABDP currently forming a nice VCP pattern.

Interesting that Minervini appears to be getting more optimistic about buying opportunities in the US after a long fallow period. His preference is for small caps (Russell index) to show more strength though. A rate cut over there this week may give them a shot in the arm.

ISAallowance

24th Jul '19

I'd just like to thank dmjram (way back at post 243) for highlighting RockRose Energy (LON:RRE) - this was not a share on my radar until that post, I took a trading position approx 1% of portfolio on 13/2 at 735, a risk since it was somewhat extended from the pivot but the volume was really strong, closed half at 1820 and half at 1905 today.

llwydiaid

24th Jul '19

RockRose Energy (LON:RRE) Likewise I bought on 13/2, but before I'd come across this thread. Sold out this morning and deserving a bottle of wine tonight!

ISAallowance

24th Jul '19

RockRose Energy (LON:RRE) I guess counts as a potential powerplay now, based on a >100% rise in 1 day? Although I sold out, I'll be keeping it on a watchlist for a possible break from a consolidation.

Rusty2

24th Jul '19

RockRose Energy (LON:RRE) stockopedia does not show any information apart from the share price, why is that?

It is probably why I did not take any notice of it.

ISAallowance

24th Jul '19

It certainly used to show all info, it's probably temporarily broken since it was suspended in late Feb (reverse takeover) and re-admitted today, certainly charts were all there prior to suspension.

andrea34

24th Jul '19

Thanks very much, CID

Rusty2

24th Jul '19

Well that would explain it, probably will take a few days for Stocko to update the information.

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Trading U.K stock market using Mark Minervini strategy

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Unwise2

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