Patience is in order for this week's trade entry.
Today is the planned entry day for the February 4 SPX weekly credit spread. The current EMA as of the close is 1810.65, so a put credit spread is in order as per the trade guidelines. As of this writing, futures are trading down a bit (ES is -3.00), which could mean more follow through of yesterday's bearish close. Below is the six month chart:
SPX 6 Month Chart:
With the increase in volatility (VIX closed at 15.50), there is plenty of time to enter this week's position. I will see how the day settles, and may enter later today or tomorrow. Once again I will enter on the cautious side, selling a short strike with a delta of -.15 or less, as long as the minimum credit of .75 is available for the spread. If the bearish move from yesterday continues, I will not enter a new position but will re-evaluate tomorrow for entry.
I will post trade details later if a position is opened today; or an update tomorrow with the entry plan.
Remember the saying I posted last week: "Infinite Patience Yields Immediate Results."
As always, stay keen on your risk management and trade carefully,