What a roller coaster week! Will the rebound continue?
The broad market wrapped up one of the most tumultuous weeks of trading in recent memory with modest weekly gains after closing little changed on Friday.
The main indexes spent most of Friday diving in and out of negative territory, as investors seemed undecided on how to interpret comments from Federal Reserve officials, which followed the pattern of trading for the week.
I didn't feel it was "safe" to enter into a new weekly SPX Iron Condor Friday, so we are holding cash as our position until things settle down. You can't win by being on the sidelines, but you can't lose also.
Below is the 6 month chart:
SPX 6 month chart
SPX closed basically unchanged Friday at 1988, up just over a point or .06.%. Despite the sharp selloff earlier in the week, the benchmark index squeaked out a .0% gain for the week.
VIX 6 month chart
The "fear index", or VIX, did drop significantly from the spike on Monday. However, the closing Friday at 26.05, basically unchanged from the previous day, has me concerned that we haven't yet seen the end of these large price swings.
We will continue to trade the plan and keep tight reigns on our risk management. Please don't hesitate to email me anytime with questions you may have. The guidelines for the Couch Potato Trader plays were most recently published on August 20, 2015, and can be found at this link:
Link to Articles
Next week's economic news is summarized below; the highlight of the week is Friday's release of the non-farms payroll before the open.
9:45 am Chicago PMI Index
10:30 am Dallas Fed Manufacturing Survey
9:45 am ISM Manufacturing Index
10:00 am Construction Spending
8:15 am ADP Employment Report
8:30 am Productivity and Costs
10:00 am Factory Orders
2:00 pm Beige Book
8:30 am International Trade
8:30 am Jobless Claims
10:00 am ISM Non-manufacturing Index
11:00 am EIA Petroleum Status Report
8:30 am Monthly Employment Situation Report
Trade updates will be posted as appropriate.
As always, stay keen on your risk management and trade carefully,