Market direction is still too uncertain to venture back into the SPX Weekly Credit Spread.
After another all-time closing high on Monday, SPX has paused. Yesterday it closed basically unchanged from the previous day, and as of this writing today it is drifting lower, as you can see from the 6 month daily chart below.
SPX 6 month chart
SPX could be entering into a period of consolidation before continuing the rally, or reversing to the downside. However, I am not comfortable entering or recommending a new SPX Weekly Credit Spread this week. The VIX is still hovering at 2 year lows, and I feel it is too risky to place a short term directional trade with live capital until the market gives us a clearer sense of direction.
VIX 2 Year Weekly Chart
This is the time to practice patience once again; I will keep the allocated capital in cash as my position for the week, and continue to monitor the new monthly SPY position entered earlier this week.
I will be entering the weekly SPX Iron Condor test position tomorrow, and will post those details when the trade is opened.
As always, stay keen on your risk management and trade carefully,