I bought some SPXS there to hedge my other longs. Love those resistance zones for risk/reward. Let's fill the 3,900 gap now because it will eventually anyway. So tired of the gaps, though they do create opportunity. 

I use Matt's calculation for position sizing. I calculate a dollar amount that I'm willing to risk and enter my positions that way. 

Here is the direct link to that education: https://bpt-videos.s3.amazonaws.com/trade_to_win/trade_to_win.html

Also, take a look at the rest of the education that is provided on the website here: https://breakpointtrades.com/education/

I became a member because I wanted to learn from those more experienced than myself with results to back it up. I remain a member because being around everyone here makes me better. I have my views though I'm willing to be wrong in trading and in life because it will eventually happen. This is another important big lesson. Willingness to be wrong and change my view if needed has improved my results. As is preached here often: Protect, Monitor, and Adjust. 

Finally, I used to overtrade and watch the screen all day. The first thing I did before coming back to smaller timeframe trading is I would only take action when the systems took action. Exactly as the alerts were sent out. This kept me from selling a good position too soon. Moves take time to materialize and it can be uncomfortable sitting in a trade with drawdown, though its rare to get a swing trade perfectly to the nose on entry and exit. If someone can do that consistently my hat is off to them. I certainly cannot try to call a top or bottom in price, though I can apply supply and demand principles to improve my risk/reward proposition. 

This post this morning is me preaching to myself, so I hope in some way it has answered your question and helped you as well. I appreciate you. 

So far so good, pretty much bottomed following my post. Now watching for the other two gaps to fill 4,017 and 4,176 over time. After that maybe even working up to 4,200-4,300. 4,220 is a number that has come into play a lot this year. All stated in my original post from June 18th. 

..heard crickets at the time because Bitcoin was crashing initially over the weekend..had a friend texting me that it was going straight to 10,000 and giddy about his puts. It recovered and the market never went lower. Even some gaps up held and I believe they will fill eventually, though it just isn't going to be now. All that being said, I will change if the markets change. I have one statement on my white board in my office "Be flexible when markets change". Still one level at a time monitoring for me. I set notifications for price areas I'm interesting in and will just be checking in on the market closes now. Not expecting much and some of the move higher needs to rest a bit. Enjoy your day! 

My longs would love it if we made it to 4,000. And I would likely short/hedge if things aligned for what I'm looking for. 

I use the 3x etf it is kind of the in between road for me between a regular etf and options. That's what I love about trading and investing, it evolves over time, I get to grow as a person, trader, investor, and make choices based upon my plans that fit at this point of my life. 

Years ago I would have never considered using leverage. It took years for me to figure out what my lane was and to stay in it because that is me. I only consider certain things to trade and instruments. That is sectors and indexes. And I'm usually using leveraged etfs for trading. I can only be me and be comfortable with what I'm comfortable with. Who knows maybe I'll try and options trade at some point. I know many here use them and have plenty of other friends who use them as well. I'll start small if I consider it. Less is more. Glad to see everyone profiting here in their strategies. 

XBI bumping its head on the R1 pivot in deep 77s. The 9 day sits back at $69s if its rising. Took some LABD to hedge my remaining LABU shares when the risk/reward was best there. Good thing I was trimming that all the way up on my longs. Two gaps below now for markets 3,795 and 3,674. Seems reasonable for me to expect some backing and filling here. 

Shout out to Matt for pointing out IYT with that low risk entry! Been using TPOR the 3xetf 

XLE I took the trade yesterday first entry on the close via the 2xetf, ERX. So far so good. One thing I like about this sector is that they have earnings at their back. Can't say that for many: https://schrts.co/aUhakDtf

Given that we had a demark 9, were at support, and far away from the 9 ma, about all I could ask for. Risk/reward

Steve, Would this confirm that was a nested 1, 2 given the strength of this move? 

Matt, This is fantastic. These are my kind of trades, I only use sectors and indexes. Combining this with the CCI divergence for reversion to mean captures rotations very well. Toss in the Demark 9 and risk reward goes up tremendously. 

Update, good trade going so far, trim and trail: https://schrts.co/GTNjRNMG 

SPX I am reducing my 2022 forecast to reflect Fed policy continuing on the path to raise rates and reduce its balance sheet.  Also in my calculation are recessionary signals, recent layoffs, persistent inflation, reduced investments/project cancellations by big business.   

My previous 2022 forecast range was 3,800-4,800  which I included overshoots (forced liquidity and/or momentum).  

My revised 2022 forecast range is now  3,500-4,500. The 3,500 area coincides with a 50% fib retracement off the March 2020 lows. I've attached a view of the chart from yesterday. Included in my range again are overshoots (forced liquidity and/or momentum)

*credit to Matt for the chart attached

2022 Russell Index Rebalancing: What You Need To Know

https://www.forbes.com/advisor/investing/russell-index-rebalancing/

XLE Someone mentioned the Demark 9 buy signal this morning here and it looks like it confirmed on the close. Looks really good for a long swing trade. Matt posted some chart views earlier as well. 

*Biggest Banks Withstand Severe Recession Scenario in Fed Stress Test -- WSJ  *All Banks Tested Remain Above Minimum Capital Requirements in Worst-Case Scenario -- WSJ

...was reading details that they can withstand 10% unemployment and a 55% stock price drop and keep lending

Results from the annual bank stress tests will be released on Thursday, June 23, at 4:30 p.m. EDT

Given this, from a swing perspective that should mean we are due for a big rally here at some point. The timing is the part everyone is stumped on.

I just saw you added about the Bull/Bear spread, that part seems to indicate lower prices as the spread is leaning greedy right now. Kind of like charting I guess, pick the view one likes. 

Took a few more off in LABU when it was up 15.53% today. Amazing trade so far, entered on that big down day in the 4s off support. Guessing it sees $7.18 as that is a perfect up 1.00 for the day. Round numbers are a thing sometimes. Trim and trail. 

  Great trading Kobie

LABU 10% a day keeps other trade ideas away. Less is more in trading and in life for me.