Minervini is often labeled a momentum trader, but a more accurate description is "fundamental trend follower." He does not chase breakouts blindly; he waits for a specific technical pattern known as the . The VCP occurs when a stock, after a significant uptrend, pauses and begins to consolidate. As the consolidation progresses, the daily trading range (volatility) narrows, and volume dries up. This represents a natural "tightening" of supply and demand. Minervini likens it to a coiled spring. The wizard enters not at the top of the range, but at the precise moment the spring releases—on high volume, breaking through the pivot point. This is not chasing; it’s executing a low-risk entry with a clear stop-loss just below the recent low. Alongside the VCP, Minervini demands "Tenets" of health: strong quarterly earnings (often 20-50%+ year-over-year), rising profit margins, and a unique product or service (a "Tale of the Tape"). The wizard only buys stocks that are both fundamentally superior and technically poised for liftoff.
Market wizards understand the importance of:
Mark Minervini’s is widely considered a modern classic for growth investors seeking "superperformance"—defined as triple-digit returns that significantly outpace the broader market. Drawing from his experience as a U.S. Investing Champion, Minervini outlines a disciplined, systematic framework that bridges the gap between fundamental and technical analysis. Core Strategy: The SEPA® Methodology
Every superperformance stock has a story or an event that sparks the massive price run. Common catalysts analyzed include: New, revolutionary consumer products. Major corporate restructurings or new management. Industry-wide supply shortages or paradigm shifts. 4. Technical Entry Points
: The trade is executed at the "pivot point"—the level of resistance where the stock breaks out on significantly expanded volume. The 8-Point "Trend Template"
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