Volatility over Brexit has us sitting on the sidelines for new trade entries.
It's time to put forth this quote once again: "Infinite patience yields immediate results" (author unknown).
Now that the FOMC announcement is behind us with no immediate rate hike in sight, the world is watching, and waiting, for the vote in the UK next week. We are 5 trading days away from the Brexit vote, and I expect market volatility to continue heading up to the vote.
While a Brexit vote could move the markets lower, there is always the chance that a Bristay vote could induce a snap-back rally from the recent decline, which would likely put any new, non-directional trades in trouble as would a sharp decline.
In either case, I don't feel it is wise risk management to enter new positions before the vote, so we will sit on the sidelines with no new trade entries until late next week after the dust settles.
I understand some may be disappointed we are not entering a new play, but cash truly is a position and you can only continue to trade if you have enough capital in your account. It is one of those time that I feel is too dangerous to venture into a new trade, so we will keep cash as our position, and safely watch the volatility play out. We still have the July SPY Iron Condor open, and will continue to manage it as per the guidelines.
As always, stay keen on your risk management and trade safely,