Bulls have knocked SPX out of the range for a new weekly trade entry.
Further to my post earlier today, it does not look like SPX will pull back to be within comfortable entry guidelines for an October 2 weekly Iron Condor. As a full time trader, it is never easy for me to sit on the sidelines. However, I also value cash as a position at times. This week I will hold my cash, rather than putting it at risk for a potential whipsaw by jumping into a new position of a non-directional nature. As of this writing, SPX is up over 22 points.
I have previously posted this quote given to me by a trading associate: " Infinite Wisdom Yields Immediate Results." I keep this quote on a post-it note next to my computer, and refer to it often. Today is a day to heed that quote, in my opinion, and pass on a new trade for this cycle.
Just glancing at the 6 month daily chart of SPX, and the volatility over the last 3 days; this just does not entice me to enter a new weekly trade today:
SPX 6 month chart
Next week's economic calendar is fairly light; the highlight of the week will be Wednesday's release of the FOMC minutes. These are always scrutinized carefully by investors to see if there are any surprises since the meeting announcement last month.
In summary, it is not recommended to enter a new weekly position today; but to practice patience, look forward to next week when I hope we will have a better entry signal for the weekly Iron Condor.
For those unfamiliar with this strategy, the trade management guidelines were updated on August 7, and can be found here:
Link to Articles
As always, stay keen on your risk management and trade carefully,