A "Goldilocks" jobs report did not keep the bears in hiding.

The monthly non farms payroll report released at 8:30 Friday indicated that 209,000 new jobs were created in July. This makes a streak of over 200,000 new jobs in 6 months straight for the first time since 1997. Unemployment rose slightly from 6.1 to 6.2%. It appeared from the open that investors viewed this as "just about right", not too positive to have the Fed accelerate their plans.

SPX climbed up to the high of the day of 1937.45 about 30 minutes after the open; then the bears took took over through the late morning and into the early afternoon. SPX traded in a 20 point range Friday, closing down 5 points from the previous day at 1925.15.

SPX 6 month chart

VIX dropped a bit during the day, but closed up just slightly at 17.03.

VIX 6 month chart

Putting the international geopolitical issues aside, next week is a relatively light week for economic news:


10:00 am Factory Orders

10:00 am ISM Non-Manufacturing Index


8:30 am International Trade

10:30 am EIA Petroleum Status Report


8:30 am Jobless Claims


8:30 am Productivity and Costs

With the VIX at 17.00, it may still be possible to enter the SPX weekly Iron Condor for the August 2 cycle on Monday. The option code for this cycle is SPXW140808, expiring Friday, August 8.

Below is a theoretical position for planning purposes as of the close Friday (not the recommended entry strikes):

Sample August 2 Iron Condor

This sample position is based on the following strikes:

Call: -1965/+1975. Short 1965 call delta .10

Puts: -1855/+1845. Short 1855 Put delta -.13

Credit available as of the close Friday: $1.50.

These strikes will most likely change on Monday, as well as the credit. I feel the risk is more to the upside for the short term, so I would likely give more room on the call spreads. Because this is a shorter term trade given the Monday entry, I would consider entering for a credit in the range of $1.15 - $1.25. I would pass on entry if I cannot get at least $1.15 credit for the position.

I will post a position update on Monday.

As always, stay keen on your risk management and trade carefully,

Dot Hazlin