MCP Popping

This is a stock that has almost no correlation with the market and one of the reasons I like it as a long, well the charts always come first, but the fact it moves independently of the market is great too and why I like it as a longer term and trading play.

Last Wednesday I posted "I'm just reiterating MCP long, I really like this one"

However last Monday were the words that really counted...

"I've been in MCP with many of you (long), it's down about -2.5% which is fine, it's the process it has been undergoing and it looks better and better with each passing day. Liking MCP (long) the way I do, I'd be VERY uncomfortable if I didn't have a position in place already."

There are some longs I really like, USO being one and MCP of course as I said, "I'd be really uncomfortable if I wasn't already in MCP as it was in an "Any moment" position.

This morning MCP is up nearly 6.3% and I believe this is the start of a transition from stage 1 base to stage 2 Mark Up. Even though it's up almost 6.3%, looking at the big picture, it's still in a very good area to go long, although I can't bring myself to chase anything like this, I'd wait for a pullback which will come.

And the words from Monday...

"There are numerous timeframes in between that look just as good, it's the short term timeframes aligning that make MCP look like it's very close to making a strong move up."

The key to multiple timeframe analysis, the longer chart's positives are the high probability of an up move, the short term charts aligning is the key to unlocking those longer term charts.

For those who want to see if MCP is worthwhile, I think it is, but let me show you and otherwise update MCP.

 Here's today's move thus far, a nice strong candle that opened near the bottom of the range and is now near the top, healthy.

The larger view of the base, this is significant. These are the longs I chose like USO of MCP , they aren't overbought and making fractional 0.10% new highs with distribution running through them, they have strong bases in place with accumulation running through them, these are the few longs I trust.

A base like that can support quite a healthy move.

 Last Monday (as we have been seeing in other assets we are trading especially recently) we have an extreme 3C move and this is a 15 min chart, that's not a 1 min chart, so that's a lot of underlying action.

This is the intraday set up, essentially market makers or in this case specialists as its NYSE (NASDAQ stocks generally have 4 letters to their ticker) are doing the last bit of stocking up as they know a move is impending, this is why the short term charts are so important in multiple timeframe analysis when the long term are already positive.

To put it in to realistic terms, the Specialists have already filled a nearly year long order, they know it's filled and ready to go, they make a market in the stock so they want inventory for the move to sell in to as about 30% of their trading is for their own account.

So for us, we want to see the long term charts with strong signals and then the middlemen getting in position like that 15 min chart and the one above, telling us that the play is going from an accumulation or distribution phase to the actual mark up or decline.

Overall, the long term chart I provided showing the decline or a bear market and how there were 5 weeks of rally that you'd barely notice looking back and a 40% gain you'd barely notice looking back, but how those are the types of intraday , day to day or week to week actions that are deceiving in price and would knock most traders out of the position, this is why it's a good to have objective evidence as to why you are willing to hold through those periods or trade around them knowing the trend will continue and while a 5 week rally is a lot, in the trend it was just noise.