Planning for next week; too much event risk to enter a weekly trade.
For the past few weeks, some subscribers have had difficulty getting fills on the SPX Weekly Iron Condor. The bid/ask prices on SPX can be quite wide at times. I mentioned in my Weekend Update that we may consider entering the weekly position a day early - on a Thursday rather than Friday, as was suggested by one of our subscribers. After thinking further about the suggested early entry date, I think it is worth a try for a few weeks to see if it allows for better execution. Of course, this will depend on economic news that may be released on Friday that could affect the early entry.
This Friday is the U.S. Presidential Inauguration, which, in my opinion presents a dangerous event risk. While security levels will be at their highest during the day, there still is the "what if" risk of some sort of attack on the festivities. In light of this, we will not consider an early entry for the weekly Iron Condor. Instead, we will sit on the sidelines for a weekly trade entry, and look at entering next Thursday for the February 3 weekly cycle.
We have the RUT and SPY monthly positions open, and will manage both of them as per the guidelines but refrain from a new short term trade entry for next week.
Next week's economic news is highlighted below:
9:45 am PMI Manufacturing Index
10:00 am Existing Home Sales
10:30 am EIA Petroleum Status Report
8:30 am Jobless Claims
8:30 am International Trade In Goods
10:00 am New Home Sales
8:30 am Durable Goods Orders
8:30 am GDP
10:00 am Consumer Sentiment
Once again, there will not be a trade recommendation this week for the January 27 SPX weekly Iron Condor.
Trade updates will be posted as appropriate
As always, stay keen on your risk management and trade carefully,