Today's bearish action has taken SPX out of entry range.
After days of very little price movement, the bears have come out in full force this morning. As of this writing, SPX is down 24 points, and the selloff is continuing across the broad market.
The guidelines for the weekly SPX Iron Condor call for "NO ENTRY" if SPX has moved up or down one standard deviation, which is currently 15 points.
For those unfamiliar with the strategy, the trade management guidelines were updated on August 7, 2014, and can be found here:
Link to Articles
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 in to a new short-term position of a non-directional nature.
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. This is one of those weeks to heed that quote, in my opinion, and pass on a new trade for next week
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.
As always, stay keen on your risk management and trade carefully,