Ep. 247 Mark Minervini: Is The Party Over Or Just Getting Started?
Dec 14, 2023
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Mark Minervini, founder of Minervini Private Access, warns investors to keep one foot by the exit. Learn how to spot a market that’s just getting started versus one that’s wrapping up. Abercrombie & Fitch, Crowdstrike, and Booking Holdings are some of the best stocks to watch. Emphasis on timing, analyzing stock setups, and managing risk in a volatile market.
Mark Minervini advises investors to keep one foot by the exit and be cautious about potential market wrapping up.
Abercrombie & Fitch, Crowdstrike, and Booking Holdings are highlighted as top stocks to watch in their respective categories.
Analyzing individual stocks with a bottom-up approach leads to better trading opportunities and more reliable profits.
Deep dives
Lenare and BHI: Reducing positions to strength
Lenare and BHI are housing stocks that have shown strength recently. However, they are getting a bit frothy in the short term, so it is recommended to reduce positions on strength in these stocks.
Expedia, Booking, and MMYT: Fresh breakouts in the travel booking space
Expedia, Booking, and MMYT have all shown fresh breakouts in the travel booking industry. These stocks have exhibited volatility contraction patterns and have performed well since December 1st. Short-term traders may consider taking profits while longer-term traders may stay invested in anticipation of further gains.
JAKKS Pacific: A power play in the toy industry
JAKKS Pacific is a stock that has recently emerged as a strong player in the toy industry. It has exhibited a power play pattern, where the stock doubles in a short period and then consolidates before continuing its upward trajectory. While the stock may appear extended, the lack of significant profit-taking indicates strength and suggests a potential continuation of the upward trend.
Short-term trading and sentiment
When it comes to short-term trading, it is important to pay attention to sentiment. While sentiment indicators can be useful in predicting short-term moves, they become less reliable as the market persists. Sentiment is like a flock of birds, with everyone moving in the same direction. It is a good contrary indicator when sentiment reaches extreme levels, but it is not the sole factor for making trading decisions. Instead, the focus should be on the individual stocks and their setups, as they tend to be more accurate indicators of market movements.
The importance of individual stock analysis
Analyzing individual stocks is crucial for successful trading. Rather than relying solely on market analysis or group movements, it is essential to evaluate each stock on its own merits. In the past, the top-down approach, focusing on the market and then the groups, led to missing the best performing stocks. By adopting a bottom-up approach, starting with individual stocks and then looking at the groups they belong to, better trading opportunities arise. The key is to identify leading stocks that set up and start moving before the broader market turns, as they often offer significant gains. Trading individual stocks based on their individual setups provides more reliable and profitable opportunities.
Is it the best of times or the worst of times? With markets higher and rates coming in, pressure to jump into the market is intensifying. But Mark Minervini, founder of Minervini Private Access, warns investors to keep one foot by the exit just in case. Learn how to spot the difference between a market that’s just getting started versus one that’s wrapping up, and why Abercrombie & Fitch (ANF), Crowdstrike (CRWD), and Booking Holdings (BKNG) are some of the best stocks to watch in their categories.
