It seems that good news is bad news; the continuing fear of taper put the SPX December 1 credit spread into negative territory.
Despite this morning's ADP report releasing the news that private sector job growth is the hottest in a year, the market reacted negatively. The news just increased the continuing fear that the Fed will taper its easing program sooner rather than later.
Shortly after the bell, the order to close the position for a debit of $1.50 executed. This resulted in a loss of $-75, which was the pre-set loss for the position, or 8.1% of the actual margin. It's never a good feeling to have to take a loss, however, having the closing order in place removes the question "will it rebound"? As I've said before, particularly with weekly trades, it's best to just stick within the guidelines and exit when the plan calls to do so.
A new position will be entered Friday, as long as market conditions are within the guidelines.
As always, stay keen on your risk management and trade carefully,