How Mark Minervini Buys After a Big Run
Minervini calls it tennis ball action.
It shows up after a stock has already made a strong advance.
Price runs.
It pulls back.
Volatility contracts.
Tight price action forms.
Like a tennis ball forced underwater and then let go. It shoots up.
In LULU 2010, the key was the tightening on the right side of the base.
Pullbacks became smaller. Volume dried up.
That tells you supply is being absorbed.
The buy came after:
• Higher lows
• Clear volatility contraction
• Expansion higher on powerful volume
The edge was recognizing the compression before the move.
Study the right side of bases in leading stocks.
