MCP Update

Earlier in the week I opened a Half size Trading position in MCP. I was hoping MCP would pullback a bit and allow me to fill out the rest of the position which has happened thus far. We have a small trading range that would normally be considered the reversal process of the pullback and just moments ago a move below that range that hit a large number of stops (possible head fake move). The 3C 1 min chart is where any new divergence will start and it appears that the range is a reversal process and that the move below this morning on heavy volume is a head fake process.

Right now, the next thing to do is confirm that the move below the range is a head fake move in the reversal process which would be an excellent add-to area as well as an call option purchase area, but since it just happened, we need a little time to confirm that the move under the range in being accumulated, if so, then the head fake acts as a excellent timing marker as we see head fake moves in 80% of reversals no matter the timeframe and they often occur right before a reversal (to the upside in this case) as they allow last minute accumulation in size, they wipe out the weak hands (longs) and the head fake process has a lot to do with creating snow ball momentum to start the reversal so MCP is high on the list today.

*MCP is not a barometer of the market as it moves on its own.

 The hourly chart gives a strong positive feel with a lot of accumulation in the large base area which is very low in the extended base.

The 15 min chart shows pullbacks and accumulation and pullbacks.

The 3 min chart shows the flat range that has been in effect for a day, this is roughly proportionate to the preceding trend and thus likely or rather the right size for a reversal process.

The move below support hit stops as a head fake move is meant to do, it allows accumulation of a large number of shares at once, but doesn't seem to cause any suspicion as few people think about who's on the other side of the trade, also the shares are acquired at a better price.

This is the 1 min chart showing the most recent action (underlying 3C) in MCP, it does appear this is a reversal process, we just need confirmation that the break below just minutes ago is a head fake move. In this case I would add to both the trading long and Calls out to February/March.