It's down to the final stretch in Tuesday's US Presidential election; the world awaits the outcome.
The broad market continued its losing streak Friday as the US Presidential election is now only 4 days away. The benchmark index SPX posted a 9 day losing streak, the longest stretch since December 1980. The index started higher, but gains were erased as the day progressed as uncertainty over the outcome of the election over-ruled the positive economic news earlier in the day. SPX closed down -3.44 points to 2085.22, down -.17%. The low of the day was 2083.79, so the close was just slightly higher.
We do not have any open positions on this weekend; it would have been suicide in my opinion to open the weekly SPX Iron Condor. Cash is a position to hold in these times of uncertainty.
SPX 6 month chart
The CBOE's volatility index crept higher all week, closing Friday at 22.51, +1.9%. The historical 52 week low for the VIX is 11.02, and the 52 week high is 32.09. Depending on the outcome Tuesday, the fear index may get closer to that 52 week high.
VIX 6 month chart
Next week's economic news, certainly highlighted by the US Presidential election Tuesday, is summarized below:
US Presidential Election
7:45 am Fed's Charles Evans speaks
12:20 pm Fed's Charles Evans speaks
10:30 am EIA Petroleum Status Report
1:30 pm Fed's Neel Kashkari speaks
9:00 pm Fed's John Williams speaks
8:30 am Jobless Claims
10:00 am Consumer Sentiment
Next week is the planned entry for the SPY December monthly Iron Condor. Depending on how the market reacts to the US Presidential election outcome, I will begin looking at possible entries later in the week.
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,