MCP Update

Lets just jump to the charts...

 This is the last MCP trade we opened with calls and filled out the partial long position as a head fake move took out stops at $2.50 on heavy accumulation (at the white arrow). The next day it was up +12%, we closed the calls that day, but left the MCP long equity position in place as 3C never deteriorated, even since the drop post earnings (reminiscent of the RIMM trade which showed excellent signals and poor price action until a month or so later when they had a major CEO/management shake-up and it leapt to a double digit gain).

 I posted this chart last Friday, Interesting MCP Chart as the BB's squeeze on a daily indicating a highly directional move is about to start, with the 3C accumulation, the probabilities are strongly in favor of up.

This is the 60 min chart which along with longer charts has stayed positive even after the post earnings decline.

Here's the 15 min chart and our last trade signal as we bought calls on the break of $2.50 as stops were hit, this chart has stayed very strong for near term action.

As for our Daily X-Over screen, one of 3 indicators is giving a long, the other two (middle and lower) are likely to cross up today to a long signal.

As far as MCP's longer term view, this is one I have liked for a long time, the range / base was so well defined, we expected a head fake move below the range before a move up, even though the move seems large, it's very proportional to the base, also notice how low MCP still is within the base.

After a base this long, the head fake move is actually very proportional. Based on the price pattern implied target, MCP should hit at least 12, but I believe this is going to enter a longer term primary bull market. I wouldn't chase this if possible or at least consider phasing in to it, but there's plenty of upside in my view.