TRADING MINOLA ON NEO and EVRI with strong Net Income and Revenue

June 10, 2019 Monday

TRADING MINOLA ON NEO & EVRI + Net Income/Revenue Catalyst

As I was reviewing a particular stock called NEO, I happened to noticed that I had blogged this stock twice.

1. NEO hitting MINOLA on Stockfetcher published Nov. 7, 2018
2. NEO hitting MINOLA and hot to position for Entry using the Previous High Volume, published March 1, 2019.

Review on MINOLA:

MINOLA is the term I used for the combination of strategy taken from the best traders.

1. MIN - stands for MINERVINI, of Mark Minervini who popularized the  SEPA (Specific Entry Point Analysis) and VCP (Volatility Contraction Pattern) strategy entry.
2. O - stands for O'Neil of William O'Neil who popularized the Pocket Pivot.
3. LA - stands for Larry of the ADX(14) Larry William strategy.

I combined these 3 elements into 1 single filter of stockfetcher to be able to get me extract of stocks hitting MINOLA point where all the elements from the 3 Masters converged.

The MINOLA Filter on Stockfetcher:

This is how the filter looks like of which I added my own marked with /*Noel J*/. As you can see the filter had evolved over time of which I added more element taken from Mark Shipman, although I did not add his name on the Filter Name I created.

/*BEGINNING OF FILTER*/

/*Minervine SEPA (Specific Entry Point Analysis) combined with O'Neil Pocket Pivot and ADX(14) of Larry Williams*/ 

Show stocks 

/*CURRENT volume is 150% or higher above avg vol(10) 10 day ago*/

CURRENT volume is more than double from previous day volume /*O'Neil*/

where close reached a new 20 days high           /*Larry*/

and Close divided by 260 day low is above 1.25  /*Minervine*/

and Close divided by 260 day high is above 0.75 /*Minervine*/

and CURRENT Volume is more than 200000         /*Noel J*/

and the price is between .5 and 30             /*Noel J*/

and RSI(^SPX,14) > 69                       /*Minervine*/

and draw MA(10)        

and draw MA(20)    

and do not draw ema(18)

and draw MA(50)

and do not draw ema(50)

and draw MA(200)

and MA(200) is increasing for 1 month or more   /*O'Neil*/

and ADX(14) > 20                                /*L.Williams like 30 with Price touching MA(20)*/

and MA(30) is above MA(50)        /*Added Nov.7,2016 Strategy of Mark Shipman

                                                  Big Money Little Effort

                                                  A Winning Strategy for Profitable Long-Term Investment*/

and add column RMI(10,1)

and add column RSI(^SPX,90)

Chart-time 6 months 

/*END OF FILTER*/

The MINOLA Strategy

I will not be explaining the meaning of the filter here, but I will be laying down the Strategy of how to trade once a certain stock reached its first MINOLA point. 

MINOLA Pattern 1 "Huge Pocket on  40 Trading Days + 400% + Vol after 11 Trading Days"

Sample: NEO (MINOLA: Oct. 26, 2018 , 400%+ Vol:  Jan 11, 2019, MINOLA: 2019/03/01)

Catalyst:
       2018/08/06 10Q comparing 2018 vs 2017 2 months before MINOLA:

          Revenue: 67M vs 62M
          Net Income: 5.9M vs -2.1M

        2018/11/05 10Q after MINOLA

          Revenue: 63M vs -3.9M

          Net Income: 2M vs -4.3M
Entry: Close of the 2nd Day after 400% + Volume Spike

MINOLA Pattern 2 "400% + Volume after 15 Trading Days, Vol Breakout on N78 Volume" 

Sample: EVRI (N78: Sep. 13, 2018, MINOLA: Feb 20, 2019, 400%Vol+ : Mar. 13, 2019)

Catalyst:
        2018/08/07 10Q: 2018 vs 2017
           Income: 6M vs -22.5M
           Revenue: 118M vs 242M
        2018/11/06 10Q  2018 vs 2017
           Net Income: 8.1M vs -26.8M
           Revenue: 65M vs 55M

Entry: Close of the 2nd Day after the 400% + Volume Spike