MCP Update/Follow Up

MCP is a longer term long position that I have liked for a while, it has a huge base, it moves on its own, for instance Friday as the market was falling in to the close, MCP was popping, but it's more than that, it has just been putting in the time, doing the work to build a strong, sustainable base to launch from.

I have this in an open long trade, I can't add to it any more as it's at full size and a Call position, both are in the green.

The long term charts are beautiful, especially since Goldman came out with a little negative rating that sent MCP to the lower end of the base.

Today it's the 5 min chart grabbing my attention which is now starting to migrate or bleed over to the 10 min chart as well. If the intraday charts were not mushy and we had a bit of a pullback, I'd call this a really strong entry, I'd probably still call this a really strong entry.

What will be most interesting today is what happens with these 5/10 min charts, but I think it looks good so far.

 You can see how big the rectangle base is, it was an ascending triangle, not a consolidation though as it was way too big, but base until GS came out with a hit piece knocking it down, which tells me Goldman is 95% going long down here.

There's a "W" base in place, neither of the 2 individual bottoms in the "W" alone would be proportionate (big enough) for a reversal process I'd trust (there's a proportionality to these), but taken together the process is just about perfect. I really don't know and don't think we get another move down toward the lows, but looking at the bigger picture we are still very low in the rectangle.

This is the 30 min 3C chart (the 60 should have loaded first), the red arrow is Goldman's piece and look at 3C since then, that tells me GS is a likely buyer, you can pretty much do the exact opposite of whatever Goldman's sentiment is, it works like magic with their free trades, I think Tom Stoppler is 9 for 9 losses now on his calls (they are not dumb and they are not taking losses, they are creating opportunity with those trade red'ds).

GS is known as a firm that trades against their own clients so what do you think they are doing with these free trade ideas for the public, it's like the CEO on CNBC pumping his company while dumping his shares at the same exact time.

 Here's the 60 and the base, look at that leading positive on the GS call that sent it lower! I am very happy with the long there, there's not much risk placing a stop below the rectangle, although it's a very obvious place so you want to stay away from any obvious moving averages, whole numbers like $4.50, you don't want to be a penny under the lows or anything like that, even though I doubt it heads back down there.

Next up should be stage 2 and with a base this size, it should be a doozy. In effect, the head fake move (yellow) is already in, that's also what creates the momentum, see the last one on the upside and what happened next.

This is the 5 min chart I'm watching, there's accumulation at the lows, but also right here apparently just below the resistance of the smaller "W" base so I'm guessing MCP is gathering some energy for a breakout of the "W" resistance area right around $5.

I'll keep an eye on it because a pullback would be fantastic, but even without it, if that 5 min gets much more vertical, I'd likely open or add to the position (which I'm already at full size), but perhaps you may be interested.