Trading US stock market using Mark Minervini methods

Wednesday, Mar 20 2019 by
13

Thought we could take Unwise2's suggestion to start a US thread.

Have been a number of breakouts in Mar'19 - to name a few, $YETI , $TTD , $STNE

There were also a number of failed breaks in Feb'19, which would often hit a 52-wk high on a break (even if only base 1 or 2) and sharply reverse. MM himself alluded to this, suggested it was mainly retail buying - generally these were smaller names.

US advantages: low spreads, low transaction costs, larger number of names/opportunities
US disadvantages: FX costs, larger number of names/opportunities (makes tracking more difficult)

I have a USD account with Interactive Brokers for my trading (and anything i do in the US is swing trading - and not investing)

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19 Posts on this Thread show/hide all

mrosbiston 20th Mar 1 of 19
2

current watchlist is Vericel, LifeVantage, AudioCodes, eHealth

no open positions

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mmarkkj777 20th Mar 2 of 19

A really great idea. I'll be looking in every day and contributing where I can.

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herbie47 20th Mar 3 of 19

Yes a good idea as I’ve just started trading US stocks based on MM, I was lucky to catch both YETI and TTD, I sold both but looking to buy back in on a pullback, not sure of MM strategy on that. I agree there seems to be far more choice in the US market.

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herbie47 20th Mar 4 of 19

A few on my watchlist that maybe of interest are: FIVN, FL, OFG, PCM, PYPL, SPLK, VEEV.

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mrosbiston 21st Mar 5 of 19

In reply to post #460053

Think MM is more of a fan of breaks - i'm not sure he would re-enter unless setting up a new VCP - as price as moved 15-20% from the initial VCP setup.

David Ryan is someone who would buy on a pullback, he has a slightly different technique

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Jack Corsellis 21st Mar 6 of 19
1

£IRDM £BCSF £CWT £ARRY £FIVN £CMG £SUI

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herbie47 21st Mar 7 of 19

In reply to post #460313

Thanks, I'm not finding much in his first book about it but did read about Pause, a stock will pause over a number of days or weeks then form a plateau which should be within 5-10% of the high point. Then it is set up to buy if it moves about the pause level. He also has pullback buys on his watchlist. So YETI could be one. TTD has already broken out above the pause, maybe setting up again?

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unwise2 21st Mar 8 of 19

MM will sometimes buy pullbacks if the pullback is no more than 10% and on lower volume days than the breakout

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mrosbiston 21st Mar 9 of 19

In reply to post #460103

Saw that VEEV ceo earned (loose term) £87m in share options. Quite incredible really.

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mrosbiston 21st Mar 10 of 19
5c939e6bec4edCapture.JPG

Not sure if you can see the above properly - this is generally how i narrow down a watchlist after running stocko screens.

From the suggestions, i like FIVN , PYPL and VEEV

My only issue is these are late stage 2 plays - so i would have fairly modest expectations and likely book any profits quite early (if they setup)

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herbie47 22nd Mar 11 of 19

In reply to post #459998

Had a look at those, all look pretty good to me, Audiocodes is Israeli so probably not for me. I assume you are waiting for these to reach new highs before buying? I note eHealth was up 10% yesterday.

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mmarkkj777 23rd Mar 12 of 19

Ive just sold Five9 (earlier in the week, but maybe sold to early).

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mrosbiston 25th Mar 13 of 19

In reply to post #461018

yeah i'd want to see a pivot of some sort, Vericel was close to setting up in mid-March, but didn't quite make it. eHealth still looks good, but has been going through some distribution over the last couple of weeks - the original VCP was around $40 and i missed that... so is it strong hands moving to weak hands?
i would want to see a new contraction point on any of the watchlist (adding Five9, VEEV and PYPL) - entry is usually on an intra-day break of my line, where volume in the first hour is around 50% of the 10d average vol.

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mrosbiston 9th Apr 14 of 19
1

currently like the look of Evertec (EVTC) - would buy on break of 29.50 pivot on expanded volume

5cace2e270e93Chart-evertec-inc-932019.pn


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mrosbiston 17th Apr 15 of 19
2
5cb6fc47a1ee5Chart-evertec-inc-1732019.p

entry at 29.50 - what to see a couple of days follow through - ideally with a little volume too.

Stop is at $27, but the likelihood is i would pull the trade if it reversed much before this level (potentially around $28, very much depends on price action). if it setup again then i would consider re-entry.

Results out 1 May, exp. for EPS of 0.48 (noting it has beat the last 4 quarters). If the trade is still going, and i have a cushion (10%), then i would hold into earnings.

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maffs0 17th Apr 16 of 19

I bought this on 19 Feb when it broke out of a tightish spot and then two days later, it got clobbered and I got stopped out. It does look like it wants to go higher though so hopefully you'll get that cushion to enable you to hold.
M.

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Howard Marx 17th Apr 17 of 19
2

Qualcomm broke out yesterday on significantly higher volume - I'd expect it to break $80 by the end of the week.

5cb714b042232QCOM.jpg


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mrosbiston 17th Apr 18 of 19
2

In reply to post #470176

nice move on the royalty dispute - agree this seems to have some momentum now. Amazing that such a large mcap can still make such a move once an overhang has been removed

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mrosbiston 2nd May 19 of 19

Have closed out EVTC at 30.75, held into earnings (which was a risk), and the numbers were solid - but not stellar.

There doesn't appear to be much volume coming through, so would view this as a fairly unappealing share to move higher - limited demand, limited appeal (growth is pretty muted at 8% y/y).

Believe there are better opportunities out there.

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