MCP Update

I'm going through some watchlists of stocks that look interesting on a double bottom "W" type bottom which seems likely from today's action.

I see the last time I updated MCP Sept $6 Calls was Aug. 23rd

Ironically the first paragraph of that post said,

"The MCP September $6 call is in the green and so long as we don't form a double bottom (which I think would be too large of a base/too large of a bounce), MCP has a beautiful bottom in place and divergences that show it did pick up strength (like XOM) around the 15th/16th of late last week when bounce signals first started coming in, but the strength of MCP signals show it is clearly a stock that can stand on its own two feet rather than just drafting the market."

Wouldn't you know it!

So MCP is finally starting to look alive on the second half of what appears to be some form of a double bottom base, it's really not an ideal description. There's still some work to do, but that is the point of pulling back in to a second bottom or the lower end of the range, that's where the accumulation happens and I think if we stay on this course, MCP will be a decent looking long for a stronger bounce than expected on the 21st or as an add-to position.

 2 min, even here if you look at volume there's a head fake, new breakout high just before the reversal on a 2 min chart, the concept is found on all timeframes. More importantly for MCP, this chart is showing a solid divergence here where it wasn't before, that's why it has been so long since the last update, there was nothing worth mentioning.

 This is the original base started 8/16 and the 21st we saw upside since that last update, "as long as we weren't headed toward a double bottom", which of course is a much larger base and more capable of sustaining a larger upside move.

The point, we have good signals migrating to longer timeframes here too.

Looking at the bigger picture of what is likely all 1 base, the 15 min chart is leading positive as we move toward a double bottom which means, if a few more timeframes are filled out in MCP, it becomes a very high probability, low risk position.