The "buy the dip" crowd is alive and well; the bulls are not ready to give up control yet.
The late-day rally Friday brought the broad market into positive territory to close the trading week. Earlier in the day it looked like the bears were gaining ground, but once again the "buy the dippers" arrived in the afternoon.
The benchmark index SPX closed up 3.4 points or .2%, at 2367.28. This gain was another record high close, and the fifth straight week of gains.
We have no open positions on this weekend. On Thursday we tested the early entry on the SPX weekly Iron Condor, and we were able to exit the trade on Friday. This was the third week entering the play one day early, so far we have had two gains and one loss.
SPX 6 month chart
The volatility index VIX closed down 2% Friday at 11.47, still well below the historical average of 20.
VIX 6 month chart
Next week brings a fair amount of economic news, only time will tell if any of these events will be market moving. A summary is below:
8:30 am Durable Goods Orders
10:00 am Pending Home Sales Index
10:30 am Dallas Fed Manufacturing Survey
8:30 am GDP
8:30 am International Trade In Goods
9:45 am Chicago PMI
10:00 am Consumer Confidence
12:45 pm Fed's Esther George speaks
3:30 pm Fed's John Williams speaks
8:45 pm China's Manufacturing PMI Report
8:30 am Personal Income & Outlays
9:45 am PMI Manufacturing Index
10:00 am ISM Manufacturing Index
10:30 am EIA Petroleum Status Report
12:30 pm Fed's Robert Kaplan speaks
2:00 pm Beige Book
8:30 am Jobless Claims
10:00 am ISM Non Manufacturing Index
For those unfamiliar with the strategies we trade, the trade management guidelines for all the Couch Potato Trader strategies 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,