"Most superperformance phases (Phase 2 of Wycoff Cycle) are driven by an improvement in earnings, revenue, and margins."

~ Minervini

Mark seems to wait for entry into the Phase 2 of the Wycoff Cycle and seemingly makes very little moves during down trends. In November 2021, he tweeted that the market would be in a significant downtrend and remained bearish on the market stance even by July (while I am writing). Personally, I have not seen him play anything short and often states that he already made his money from Phase 2 so now he needs to protect his cash and pulls most out of the market.

He is very calculating and will wait for a stock to be in its Phase 2 for him to invest. Simply put (pun intended), you do not need to play the market both ways and can sit on your hands until the right setup arrives for you to invest.

Personally, I enjoy investing when the market is bullish, bearish, and sideways.

see Wyckoff Market Cycle

If a stock does not meet the criteria seen below, he disregards and looks for something else. If it meets his criteria, he then breaks down the fundamentals to see if it is worth investing.

• He rarely invests in stocks that have dropped 60% or more

• Stocks down that much often signal a serious problem or over evaluation

• Most constructive setups correct between 10% - 35%

• Stocks that experience a deep sell off must contend with a large number of potential sellers or overhear supply

• see AAPL, MSFT, SPY, and QQQ in 2022

Minervini places a huge emphasis on earnings and how he interprets the information

Earnings

• Earnings surprises

• Accelerating EPS and Revenues

• Expanding margins

• EPS Breakout

• Strong annual EPS change

• Signs that acceleration will continue

see CANSLIM

"Every stock that makes a huge gain has a catalyst behind it."

~ Minervini

see Catalysts

"...find multiple opportunities to catch a meteoric rise at a low-risk entry point. Time the entry point correctly during a bull market and you could be at a profit right away and on your way to a big gain."

~ Minervini

"Not all stocks that display superperformance characteristics will result in gains. This is why you must establish stop-loss points to force you out of losing positions to protect your account. Conversely, at some point your stock must be sold to realize a profit. "

~ Minervini