Only one word can describe yesterday; UGLY.

Yesterday's market selloff was pretty scary to watch; investors worldwide fled to the sidelines following the Brexit vote referendum. When the markets closed Thursday, it appeared that a "stay" vote had been priced in, but many were surprised when awakening Friday morning.

The benchmark index SPX closed down -75.91 points at 2037.41, a drop of 3.59%.

Below is the open position status:

SPY July Iron Condor

This monthly position was opened on Monday, June 6. Position details are below:

- SOLD SPY July 217 Call, .37 credit.

- BOUGHT SPY July 222 Call, .06 debit.

- SOLD SPY July 201 Put, 1.21 credit.

- BOUGHT SPY July 196 Put, .70 debit.

Order was filled as an "Iron Condor" for $.82 net credit (all four legs) .

Margin/Risk is calculated by the width of the wings ($500), less credit received.

Margin/Risk for this trade: $418.

Target Gain: 10% of margin/risk.

Max loss: 15% of margin/risk.

Below is the risk graph of the position as of the close Friday:

SPY July Iron Condor:

SPY closed Friday at 203.13; and the position is currently precariously close to hitting our stop loss. If there is not a rebound Monday, we may have to exit the position if the short strike is reached, or the pre-set 15% max loss of $(63).

Below is the SPY chart showing the short strikes:

SPY 6 month chart

The "fear" factor VIX shot up with the selloff yesterday; it closed at 25.76, up 8.51 points or 49%. The six month chart of the CBOE's volatility index is below:

VIX 6 month chart

For all investors out there, let's hope next week brings a rebound, or certainly some stabilization, to the markets.

Next week's economic news is summarized below:

Monday

8:30 am International Trade

10:00 am Dallas Fed Manufacturing Survey

Tuesday

8:30 am GDP

9:00 am S & P Cash Schiller HPI

10:00 am Consumer Confidence

Wednesday

8:30 am Personal Income & Outlays

9:30 am Janet Yellen speaks on a panel with ECB President Mario Draghi

10:00 am Pending Home Sales

10:30 am EIA Petroleum Status Report

Thursday

8:30 am Jobless Claims

9:45 am Chicago PMI

Friday

9:45 am PMI Manufacturing Index

10:00 am ISM Manufacturing Index

10:00 am Construction Spending

For those unfamiliar with the strategies we trade, the trade management guidelines for all the Couch Potato Trader plays were most recently published on August 20, 2015, and can be found here: Link to Articles

Trade updates will be posted as appropriate.

As always, stay keen on your risk management and trade carefully,

Dot Hazlin