MCP Update

For the past 3 days I've considered putting out an MCP update, each day I've been seeing some change in character and improvement, but I don't want to put out an update for signals that may break up because they aren't yet strong enough to hold their ground so each day I've passed on the update in favor of seeing what the next day looked like, however with as many people interested in MCP and with the charts now where they are, I think it's pretty safe and not a waste of anyone's time to put out the update.


From my own personal perspective, this represents my largest long exposure and many times I've looked at closing it in favor of using the capital in more immediate places, however I've refrained from doing so because there's something about the MCP story as it has developed on the charts that seems to hold a lot of promise.

In any case, earlier in the week intraday charts were going positive on what looked like a run of stops as volume increases (yellow box), hitting stops is an easy way to accumulate a lot of shares on the cheap without anyone really ever wondering, "Who's on the other-side of that trade with all of that volume?" This is one of the key functions of a head fake trade (generically speaking in its many forms).

When prices started to move up and away from the range created I was actually a bit disappointed as the larger the base, the larger the move it can support, I was glad to see it come back down on a very small negative divegrence and resume the positive divegrence through the area.

The 5 min chart shows a lot of improvement this week, also note the higher volume.

 From a larger perspective, the 30 min chart off the last low and a negative at the last pivot high have led to the current 30 min leading positive divegrence.

 I was interested to see what the longer charts were doing in this area and was a bit surprised to see a 60 min leading positive divegrence on the week as well as...

A sharp 2 hour.

As a holder of MCP long, I like what I see here a lot and it was definitely time to share it.

As far as any new or add to position, I don't see a distinct entry set-up, but it does look much better here moving forward since the decline after their financing deal came through.