Mid-week showed slight gains overall, but Friday erased those and more.
The monthly jobs report released Friday morning showed weaker-than-forecast growth for January. The US added 151,000 new jobs, slightly less than predicted. But there was some good news in the report, average hourly wages rose by 0.5%, and the unemployment rate fell to 4.9% for the first time since February 2008.
Despite the "bad news/good news" jobs report, the broad market posted the largest weekly drop in a month. The benchmark index SPX closed down 35 points at 1880, -1.85% and a weekly drop of 3.1%.
We have no open positions on this weekend; SPX was out of entry range for the weekly Iron Condor so we are holding cash as our position for the weekend. Depending on the overall market conditions and risk:reward, we may venture into the weekly trade on Monday for the February 2 cycle.
SPX 6 month chart
SPX closed just above short-term support at 1878, so we will hope that is a bounce point going into next week,
The CBOE's volatility index rose as the market dropped yesterday, the "fear" index closed at 23.28, up 1.54% or 7% and remains above the historical average of 20.
VIX 6 monthly chart
Next week's economic news is summarized below:
10:00 am Fed Chair Janet Yellen speaking; semi-annual monetary report
10:30 am EIA Petroleum Status Report
8:30 am Jobless Claims
10:00 am Janet Yellen speaks
8:30 am Retail Sales
8:30 am Import/Export Prices
10:00 am Business Inventories
10:00 am Consumer Sentiment
Next week is the planned entry for the SPY Iron Condor for the March monthly cycle. Monday will be 39 days to expiration; so we will plan to enter the position sometime next week depending on market conditions and available credit. For those unfamiliar with the trade, guidelines were last posted on August 20, 2015, and the article can be found at this link: Link to Articles
Position updates will be posted as appropriate.
As always, stay keen on your risk management and trade carefully,