After a nice start on a head fake move below $2.50, hitting stops and creating a bear trap, yesterday's action in MCP (closing with an 11.6% gain) has seen a -3.23% drop this morning.
While I still love the long equity position entered at the same time as the MCP on Tuesday of this week,
Trade Idea: MCP Filling out Long Equity & New Calls Position, I was concerned about the calls and took gains looking for a new place to enter, the reason...
This chart was the reason, the MCP reversal process was more of a "V" shaped event.
This is the signal on a 2 min chart from yesterday which reflects very short term, near term move expectations and we've seen that thus far this morning.
At the very next timeframe of 3 minutes, there was no migration of the 2 min negative divegrence so there wasn't that much damage, but enough to suggest some downside today.
As far as the longer term charts which are the reason I like MCP, there's no damage whatsoever.
If a new call option position opens up, I'll put it out there. As for the equity long position, I have no problems with it, the wider view of charts can be seen from yesterday's follow up post, MCP Follow Up
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