MCP Follow Up

I think this pullback is done, MCP is up +6% on the day, but more importantly it hit our target of the X-Over screen's 10-bar average. Other than the 1/2 size trading position entered yesterday (that makes 2 now, MCP and USO, neither had a head fake move right before they took off) the January $5 calls are still in place as is the Core (long term ) position, the charts below are EXACTLY why I don't try to get too fancy in trimming around the bone with core positions, trading positions that's fine if you have the time to watch them, but with a stock like MCP with as much potential as it has, it's not worth it which is the AAPL lesson that still haunts me after a 390 point drop a day after I covered the short to try to re-enter at a higher price.

 This is the "W" we were looking at yesterday and the reason (with the divergences) why I entered half a position, the other half would have been entered on a head fake move, but as you see, there was none.

The limit orders were easy to spot, right at resistance, as soon as it was broken this morning volume spiked, they essentially had those orders sitting right at the $5.50 mark which is not only resistance which is a little bothersome as those orders would have been known, but it's a predictable level anyway, for the same reason a Chotchkie at the super market is $2.59 rather than $2.50, because the human mind wants to gravitate toward even sums. We'll see if that has any short term negative effect, like if they try to shake those orders out as their stops are likely right at $2.49 or "Under $2.50). If so, then I'd fill out the MCP trading position, the core positions are already and have been full size.

 If there were a shakeout, I wouldn't have a problem adding because of what I know about underlying trade, the only need I have for 3C beyond the current signals is timing of a head fake/shake-out move... if it comes.

The 5 min chart with the initial base, the distribution area where we sold the last trading longs (red) and the new base on the pullback, actually it's the completion of a reversal process of the pullback.

The longer term charts are why I don't mess with core positions, just let them ride out the storm as it was already up +15% or so.

MCP 30 min with the larger base, but this is still just a splinter compared to the full base.

And the 60 min chart, that's the reason I wouldn't close a core long in MCP for a normal pullback.

Good luck everyone, I smell HUGE winner over the next 6 months, year, maybe more.