MCP Follow Up

Earlier this week the phased out exit from MCP calls gave an average return of 42% so I can't be too upset, however in the SCBO (Second Chance Buying Opportunity) Post I posted that I thought MCP would pullback to the 10-bar moving average on a 60 min chart as per the norm when using our X-Over system which not only helps determine a real crossover from a whipsaw, but is also a trading system in itself that tells you where the likely first pullback will be, where the 2nd and 3rd pullbacks will be and when the asset is starting to undergo change that is likely to end the trend.

3C can give earlier warning, but overall, I think this is a neat, tidy little trading system.

Our pullback target for MCP after having taken profits on the run up was in the $7.20 area, MCP hit that yesterday and took off this morning for a +4.7% gain.

I don't or didn't feel strong about the action in underlying trade when the pullback took place yesterday so I didn't open a new position, but for those of you who did, this is what we have so far.

 Daily chart of the 4 stages, MCP is very close to a breakout to stage 2 mark up which is the easy money or trending part of the cycle.

This is a 1 min chart of the pullback yesterday to the $7.20 area and this morning's launch from the area.

 This is the X-over system which has stayed long with all 3 indicator panels and it saw price touch the yellow 10-bar moving average as is often the case for the first correction after a new signal is given.

The larger daily 3C chart shows the stages, the 3C divergences that correspond with each stage including the current base stage.

This is the 5 min MCP chart, this is what I wasn't too excited about yesterday, it just seemed like MCP needed some more time to gather strength so I skipped the trade.

The yellow area was our pullback target posted before it reached the area in this trade set-up post from yesterday morning.

 So far intraday we don't have the kind of support MCP needs to sustain a move higher so I'll set some alerts for a shallow consolidation and look to see if this situation has improved which may offer that SCBO.

Thus far the Trend Channel is holding this trend, you can see how close a 22-bar moving average is to the Trend Channel as a stop, for now if you don't have the T.C., a 22-bar on a 60 min chart should work fine as a trailing stop, but the moving average doesn't have the same ability to recognize a normal consolidation and keep the trade making money with appropriately locked in gains, the moving average is either too far or too close most of the time, but for today it should be fine.