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SPXL Official Stops Hit, Price Targets Still Likely To Be Hit Soon

Just an FYI on the SPXL official trade idea posted earlier today. As SPXL (3x Bullish S&P 500 ETF) exceeded the suggested stop of 58.50, moving as low as 57.18 before reversing, in keeping with consistency, SPXL will be considered stopped out for a loss of 3.2% and moved to the Completed Trade category.

For those still in the trade who set their own stops or gave it a little more rope, here are my thoughts. I typically set the stops on a trade using an R/R of 3:1 or better, calculated to the final price target. In my haste to mock-up the charts, compose the notes on the trade & get it posted asap in this fast moving market, I only calculated the stops based on the first price target of 66.40.

For those still in the trade or considering a position in SPXL or any $SPX related instrument, my personal & the now unofficial price targets remain as posted (T1=66.40 & T2=69.92). SPXL could still reverse & fall short of those targets but I still believe the odds are quite favorable that those price target will be hit, most likely within a few trading sessions. Although SPXL has been moved to the Completed Trades category, I will continue to monitor the trade along with any other significant developments in the equity markets.

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Jan 20, 2016 2:57pm|Categories: Completed Trades - Long|Tags: , , |5 Comments

5 Comments

  1. lrehmer1965 January 20, 2016 3:05 pm at 3:05 pm

    Thank you Randy, I sided with your gut feeling on this one so I stayed in the trade thru the stop. (I’m Long SSO). I agree with your thoughts and appreciate your honesty. You can’t hold everyone’s hand, only provide them with educated guidance. Awesome call again!

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  2. rsotc January 20, 2016 3:33 pm at 3:33 pm

    Thx lrehmer1965. Glad to hear that you stuck with it, heard from a few others that went long earlier today & are still holding as well. Barring a reversal & sharp selloff into the close today, we’re looking at some very bullish price action today, with the flush-out intraday breaks below support followed by this impulsive buying so far & likely to close most major indices back on or above those support levels. (remember, it’s the end-of-day closing prices matter when trading the daily time frames). Unless we get a big reversal in this last 30 minutes of trading (unlikely IMO), we’re going to print some very bullish reversal sticks across the board today. Again, congrats on your trades & thanks for the feedback. -RP

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  3. Francesco Schettino January 20, 2016 4:52 pm at 4:52 pm

    Randy, I’m in awe how you called that intraday bottom. Simply amazing! I guess I would have had a good day regardless, but by drastically tightening the stops on all my remaining shorts when you made that brilliant call and by going long SPXL and TQQQ when you suggested, I ended up having an exceptionally good day. It just shows me how much I still have to learn. Thank you for your great work!!!

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  4. davenchop January 20, 2016 5:25 pm at 5:25 pm

    uncanny isnt it

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  5. rsotc January 20, 2016 5:36 pm at 5:36 pm

    I’m very glad to hear that you had a great day Francesco, congratulations on those trades. As you’ve probably noticed, my trading style at times can be quite aggressive, often attempting to catch tops & bottoms. With that being said, while I enjoy & at times excel in catching falling knives, there are many times that I get cut doing so, sometimes badly (crude oil, as of late, has put a few scars on my hands).
    I just wanted to share that for all who are not very familiar with my trading style as I believe it is important that each trader or investor pass on the trades that don’t mesh with their trading style or objectives (or at least, paper trade or use smaller than normal position sizes to adjust for the above average gain/loss potential). Again, congrats on a good day & best of luck going forward!

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