The political battle in Washington is keeping us on the sidelines once again.
Because of the government shutdown and all the uncertainty it brings to the market, I am not recommending a new trade entry for a weekly position this week. The shutdown and stalemate on resolution is creating a much too volatile environment to invest in a new position. Please be patient, once the situation is resolved we will get back to our regular trade plan. There is no need to rush into the market at a time when the best position may be cash.
For those of you with backtesting and/or paper trading capabilities, this is an excellent opportunity to fine tune your confidence and skill level with the various strategies recommended in this newsletter. Also, please don't hesitate to email me with any questions or assistance I might be able to provide.
As the political turmoil settles I will recommend a new weekly trade entry. Congressional leaders are meeting with President Obama today at 5:30 pm eastern time; perhaps that will be the catalyst to get some serious negotiations underway to resolve the issue.
In the meantime we will continue to manage the October IWM Iron Condor. For those of you following or trading this position, the plan is to roll out the call spreads 3 points if IWM reaches 108, and appears to be closing above 108. At the same time, the put spreads can be rolled up 3 or 4 points for a credit, to help offset the cost of the call roll.
I will post updates to the current position if an adjustment is made.
As always, stay keen on your risk management and trade carefully,