Does the positive April jobs report give the Fed the go-ahead for a September rate increase?

The markets soared yesterday with the release of the April employment report. The report indicated that the US created 223,000 new jobs, higher than expected. Also, the unemployment rate fell to 5.4%, the lowest level since mid-2008.

Some economists believe the positive report for April comes too late for a June rate hike, but rather the focus will now be on September. The market rallied all day on Friday, SPX closed at 2116, up 28 points or 1.34%. The index is now only 9 points away from the all-time high reached on April 27.

We have no open positions on this weekend; the positive employment report knocked SPX out of entry range for the weekly Iron Condor.

Below is the 6 month chart of SPX:

SPX 6 month chart

I see some resistance ahead at 2120, so next week could be interesting after such a strong close on Friday.

Next week's economic news kicks off mid-week; a summary is below:


8:30 am Retail Sales

8:30 am Import & Export Prices

10:00 am Business Inventories

10:30 am EIA Petroleum Status Report


8:30 am Jobless Claims

8:30 am Producer Price Index


8:30 am Empire State Manufacturing Survey

9:15 am Industrial Production

10:00 am Consumer Sentiment

Next week is the planned entry for the SPY Iron Condor for the June monthly cycle. Monday will be 39 days to expiration; so we will plan to enter the position sometime next depending on market conditions and available credit. For those unfamiliar with the trade, guidelines were last posted on September 10, 2013, and the article can be found at this link: Link to Articles

Trade updates will be posted as appropriate.

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

Dot Hazlin