Mark Minervini's Official Blog

Stock Market Wizard, U.S. Investing Champion Mark Minervini Shares Ideas and Wisdom Here FREE!

Mark Minervini’s Morning Note to MPA members October 22, 2014

October 22, 2014

Yesterday the market staged a powerful rally; the NASDAQ Composite bolted 2.40% with advancing stocks leading declining stocks 3 to 1. The S&P 500 was up 2.00% with volume above average on both the NYSE and the NASDAQ exchanges. Yesterday’s rally was indeed impressive and strong enough to trigger a follow through day (FTD) and improve our risk model to Buy Alert status.


A FTD increases the odds that a market bottom may have been established, but as always, we will be watching the next several days very closely to determine if market distribution rears its head. Distribution soon after a follow through day has proven to kill a new rally attempt 80-90% of the time depending on how soon it occurs. 


Yesterday's rally had the "feel" of a short covering stampede. The market has rallied straight up off the bottom from a deeply oversold condition to moderately overbought in a technical "V" fashion, so its recent ascent is not likely to be sustained without a pullback soon. Going forward, it’s important to gauge how much the market pulls in, and more importantly, if volume subsides during such a pullback. A low volume pullback would be constructive. However, if volume swells, beware!


When the general market follows through and our risk model moves to Buy Alert status, I generally will buy a name or two (if a proper set-ups exist) to test the waters with real money. Yesterday I added FRGI to the portfolio; today I could possibly add another name or two, depending on how the market and stockS behave. Still,you should position size lighter than normal and keep your overall exposure moderate until your initial trades start to show progress.


While today’s rally was impressive, in order to confirm stocks are moving up in earnest, we still need to see stock set-ups proliferate and current commitments gain traction. We would also like to see our risk model improve to an outright buy to signal for added confirmation that a new uptrend has begun and the market has likely seen its lows.





Data and information is provided for informational purposes only. The information provided has been obtained from sources deemed reliable but is not guaranteed as to accuracy or completeness. Neither Mark Minervini, or Minervini Private Access , LLC nor any of its data or content providers shall be liable for any errors or omissions or for any actions taken in reliance thereon. By accessing this website, and its pages, links and trading services which users may access through this site, a user agrees not to redistribute the information found therein. All material in this website and its related websites and pages are protected under copyright laws of the United States. Unauthorized forwarding, copying or reproduction will be treated as a breach of copyright. Mark Minervini is not an investment advisor, financial planner, nor a securities broker. Minervini Private Access, LLC is not a registered broker-dealer. The Information provided in this website is not to be relied upon for your investment decision. Your decision to buy any securities is as a result your own free will and your own research. Individual performance depends upon each user or student's unique skills, time commitment, and effort. User's and students sharing their stories have not been compensated. Student stories have not been independently verified by Minervini Private Access, LLC. These results may not be typical and individual results will vary. Past results are not indicative of future returns. There is a very high degree of risk involved in any type of trading. Stocks, Options, ETF's & Futures are not suitable for all investors. Minervini Private Access, LLC., its subsidiaries and all "affiliated" individuals assume no responsibilities for your trading and investment results. No representation is being made that any account will or is likely to achieve profits. All investors should consult a qualified professional before trading any stock. Under no circumstances should anything contained in this website be construed or considered as an offer to sell, or a solicitation of any offer to buy. While all reasonable care has been taken to ensure that the information contained herein is not untrue or misleading at the time of publication, we make no representation as to its accuracy or completeness and it should not be relied upon as such. From time to time Minervini Private Access, LLC and any of its officers or employees may have a position or otherwise be interested in any transactions, in any investments (including derivatives) directly or indirectly the subject of this report. Entities including but not limited to Minervini Private Access, LLC, its members, officers, directors, employees, customers, agents, and affiliates may have a position, long or short, in the securities referred to herein, and/or other related securities, and may increase or decrease such position or take a contra position. Opinions expressed herein are statements of our judgment as of the publication date and are subject to change without notice. Specific Entry Point Analysis®, SEPA®, Leadership Profile® and Minervini Select® are Registered Trademarks of Minervini Private Access, LLC. All other trademarks are property of their respective owners. All rights reserved.