The verdict is out; no rate hike in September, but "sometime this year" is the conclusion from the Fed meeting this week.
Yesterday when the news was released mid-afternoon, the market rallied to new highs but soon pulled back. SPX ended up closing down 5 points at 1990, or .27%.
As of this writing today futures look weak, ES (SPX futures) is down 20 points, so it doesn't look like the volatility is over yet despite the "no rate hike" decision. In last weekend's update I wrote that one of our subscribers emailed me a great suggestion regarding entry for the SPX weekly Iron Condor. Rather than take on this weekend's risk, I would like to test the waters for next week and enter Monday, as long as the market is within reason.
We may have to accept slightly less credit, but we will also eliminate the chance of a Monday morning gap in either direction that could hurt the trade.
SPX 6 month chart
We saw a lot of consolidation leading up to the FOMC meeting announcement, and it initially appeared that the breakout from the consolidation would be to the upside. However, with futures down this morning, I am not certain that is the case. In any event, we will sit on the sidelines for the weekend and hopefully be able to enter a short term trade on Monday.
Trade updates will be posted as appropriate.
For those unfamiliar with the strategy, the trade management guidelines for all the Couch Potato Trader plays were most recently published on August 20, 2015 and can be found here:
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As always, stay keen on your risk management and trade carefully,