Winning streak snapped, but only slightly.
The broad market ended with weekly gains once again, for the fourth consecutive week. Friday saw a slight decline, which broke the 8-day winning streak where numerous records were reached. The drop yesterday was likely caused by the weaker-than-expected jobs report released in the morning. The report indicated the first monthly drop in payrolls in seven years; analysts say it could be a result of the hurricanes that have hit the US this year.
We do not have any open positions on this weekend; with the VIX at such low levels it is not a friendly environment to enter the weekly SPX Iron Condor. We will continue with our monthly trades, and resume the weekly trade when volatility rises a bit.
SPX closed Friday down -2.74 points, -.1%, at 2549.33. The benchmark index posted a gain for the week of 1.2%, the fourth consecutive week of gains.
SPX 6 month chart
The CBOE's volatility index, VIX, is still hovering near record-lows. The "fear" index closed up just slightly yesterday at 9.65, but being so low that +.46 points represented 5.01%. The year-to-date statistic for the VIX is amazing, the index has dropped -31.27% this year.
VIX 6 month chart
Next week's economic news, is summarized below:
U.S. Columbus Day Holiday; banks closed, market open
10:00 am Fed's Neel Kashkari speaks
7:15 am Fed's Charles Evans speaks
2:00 pm FOMC Minutes
8:30 am Jobless Claims
8:30 am Producer Price Index
11:00 am EIA Petroleum Status Report
8:30 am Consumer Price Index
8:30 am Retail Sales
8:30 am Fed's Eric Rosengren speaks
10:00 am Consumer Sentiment
10:25 am Fed's Charles Evans speaks
11:30 am Fed's Robert Kaplan speaks
1:00 pm Fed's Jerome Powell speaks
Next week is the planned entry for the SPY November Iron Condor. Monday will be 39 days to expiration; we will look to enter the position at that time depending on overall market conditions and available credit.
We also have the new RUT Put Credit Spread trade, and will be looking at an entry opportunity for this next Tuesday.
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,