Today's bearish action has taken SPX out of entry range.
The guidelines for the weekly SPX Iron Condor call for "NO ENTRY" if SPX has moved up or down one standard deviation, which is currently 15 points.
As of this writing, SPX is down over 16 points so outside the entry range. I also am concerned even if there is a recovery later in the day; with the upcoming FOMC meeting next week. Quite often the week of the meeting brings very little decay to the weekly position, and I don't feel it's wise risk management to risk having to stay in the trade through the meeting announcement and press conference Wednesday.
For those unfamiliar with the strategy, the trade management guidelines were updated on August 7, 2014, and can be found here:
Link to Articles
As a full time trader, it is never easy for me to sit on the sidelines. However, I also value cash as a position at times. This week I will hold my cash, rather than putting it at risk for a potential whipsaw by jumping in to a new short-term position of a non-directional nature.
I have previously posted this quote given to me by a trading associate: " Infinite Wisdom Yields Immediate Results." I keep this quote on a post-it note next to my computer, and refer to it often. This is another week to heed that quote, in my opinion, and pass on a new trade for next week
In summary, it is not recommended to enter a new weekly position today; but to practice patience, look forward to next week when I hope we will have a better entry signal for the weekly Iron Condor.
As always, stay keen on your risk management and trade carefully,