It is not safe to enter a new position for next week's cycle
Yesterday was an ugly day, to say the least. One look at the chart tells me that this is not the time to enter a new short term position such as the weekly Iron Condor.
SPX 6 month chart
The year-to-date results for the weekly Iron Condor have been very favorable, so far this year we have an average gain per week of 3.1% on actual margin, including the weeks not traded because of unfavorable market conditions. We have had 19 weeks of gains, and only 6 losses for the year, and I don't want to risk jeopardizing that track record.
Futures are down slightly this morning, but it is beyond my crystal ball to say where the day will go. I feel it is just too risky to enter a new weekly trade today, so I am NOT recommending a new SPX position for the August 4 cycle. We will sit on the sidelines and keep cash as our position until it is more favorable to enter a non-directional strategy such as the weekly Iron Condor.
As always, stay keen on your risk management and trade carefully,