MCP Update

MCP is a full-size long trading position, hopefully a trend position (that's what I really expect as it breaks to stage 2 mark-up).

We recently filled out our MCP partial position on Trade Idea: MCP Filling out Long Equity & New Calls Position and added Calls to that as well as MCP triggered stops on a run below $2.50, the next day MCP was up over +12% on the day without leverage (not the call positions, the stock only).

That same day (the day after filling out the long and entering the calls on the +12% gain) we exited MCP calls Taking MCP Calls Off the Table as the move was too much of an event rather than a process.

I'd still be willing to enter another call position if it sets up like the last, but for now we are still holding the MCP equity long position.

As far as I can see, so far so good as it has been since the post earning's decline, the charts are holding up extremely well.

 The flat zone with the dip on the 3rd is where we entered long on equity and calls as the move below $2.50 hit massive stops which were accumulated.

I wanted to move out of the position that day because the reversal process (that "V") is too tight to sustain a larger run and the next day MCP came down and has come right back to the range so a good thing we did exit the calls.

This 60 min chart is still leading positive and adding every day or so, I have no problem holding MCP, honestly I wouldn't have any problem opening a new position right here.

The 30 min chart shows the accumulation of the stop run and the positive activity since.

This is starting to look a little like an inverse H&S bottom, this is a much more appropriate place for it than the usual places people identify them. As far as volume, the volume is correct for one as well. Either way, I think this is a strong long position for a trending trade on the mark-up / stage 2 (break out from the base).

The shorter charts have a lot more detail so I included it just to show the additional accumulation in MCP since the +12% one day move as it came back down.

I think if you are long equity, all you need to do is watch and manage the trade, really just be patient. As far as call positions, I'd need to see something that tells me the set up for an options position is favorable enough to make up for the premium that puts you behind the 8-ball as soon as you enter.