We use stocks like MCP as a sentiment indicator. These are lower quality issues that the old-time traders would keep on the top of their box of securities, the first to go when the trader was nervous.
It works in reverse but not as predictably, if the timeframe for a decline is compressed, the trader hasn't forgotten the infatuation they had when the stock was a high-flyer and they go back to it.
On the other hand, if the decline drags out the trader won't touch anything less than gilt-edged paper, forsaking all others . (and maybe cutting deals with God,"if he can just get back to even")
On September 27 we said:
...Here's the 12-month chart, $30 looks like decent support:Yesterday the stock closed at $30.12 after trading as low as $30.03.
The stock traded as low as $31.41 yesterday before closing at $34.56.
In late premarket action the stock is up $2.39 at $36.95
With the broader market at it's lows for the day (DJIA down 233, S&P down 21) we just might have a hell of a short covering rally coming up for the big dogs.
Here's today's action in MCP, it opened on a gap up, revisited the daily low and is currently up 1.07 at $31.19: