Not much happened as investors disappeared for the Holiday weekend, but record-high gains were still logged at the close.
The broad market was very quiet yesterday in a low-volume session before the long weekend, but tiny gains were achieved. The benchmark index SPX booked its seventh straight daily advance to close +.75 points at a new all-time high of 2014.82. The close represented a weekly gain of +1.4%, and the 20th record of the year for SPX.
We do not have any open positions on this weekend; with volatility at such low levels there was not enough premium to justify the risk of a short term trade such as the SPX Weekly Iron Condor so we are sitting with cash as our position until a better entry opportunity presents itself.
Below is the six month chart of SPX:
SPX 6 month chart
The "fear" index, VIX, closed down -1.8% to 9.81, well below the historical average of 20. The close represented a 30.13% drop so far this year. The VIX has had quite a range over the last 52 weeks - from a low of 9.56 to a high of 26.72. I would like to see the VIX at least above 11, preferably 12, before entering the weekly SPX Iron Condor.
VIX one year month chart
Next week's economic news, is summarized below:
Markets closed; US Memorial Day Holiday
8:30 am Personal Income & Outlays
9:00 am S & P Case Shiller HPI
10:00 am Consumer Confidence
9:45 am Chicago PMI
10:00 am Pending Home Sales
8:15 am ADP Employment Report
8:30 am Jobless Claims
8:30 am Productivity & Costs
9:45 am PMI Manufacturing Index
10:00 am ISM Manufacturing Index
8:30 am Employment Situation Report
8:30 am International Trade
For those unfamiliar with the strategies we trade, the trade management guidelines for all the Couch Potato Trader plays 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,