Too much Intra-Day Volatility for a new weekly trade entry today.
Once again, a picture is worth 1,000 words. Below is the 6 month chart for SPX:
SPX 6 month Chart:
Over the last 5 trading days, SPX has had intra-day moves of over one, or multiple standard deviations. The High/Low prices are summarized below:
Thursday, Jan 23: 22.73 points
Friday, Jan. 24: 36.67 points
Monday, Jan. 27: 23.1 points
Tuesday, Jan. 28: 14.38 points
Wednesday, Jan. 29: 19.7 points
As of this writing, futures are pointing to a higher open, but itâ€™s anyoneâ€™s guess whether it will continue.
I would like to see at least one day with less intra-day volatility before recommending a new weekly trade entry. With the VIX (CBOE volatility index) at 17.35 as of the close yesterday, there should be plenty of credit for entry Friday. I donâ€™t feel comfortable selling put spreads, or call spreads, until I see the market settle down a bit. Therefore, I am not recommending a new weekly trade entry today; I will plan to enter tomorrow depending on market conditions
I will post a trade update with entry details.
As always, stay keen on your risk management and trade carefully,