Markets surged to another all-time closing high, how high will it go?
The broad market continued to move up Friday after a stellar jobs report was released before the open. The better-than-expected numbers showed continued improvement in the labor market; 255,000 new jobs were added in July. The unemployment rate was unchanged at 4.9%. These numbers increase the probability that the Fed will raise interest rates, but there's still a lot of time left before September.
The benchmark index SPX closed up 18.62 points Friday to close at 2182.87, a gain of .86%. The index closed at the highs of the day; and was the first record close since July 22.
We do not have any open positions on this weekend; the rally took SPX outside of the guidelines for a new weekly trade entry.
Below is the 6 month chart; I note also that Implied Volatility is now at 11.8, the lowest in over 6 months.
SPX 6 month chart
As the market rose, the "fear" index VIX dropped. The volatility index closed at 11.39, down 1.03 or -8.29%. The close was just off the low of the day which was at 11.18. Below is the VIX chart; it is now well under the historical average of 20.
VIX 6 month chart
Next week's economic news is summarized below:
8:30 am Productivity and Costs
10:00 am Wholesale Trade
10:30 am EIA Petroleum Status Report
8:30 am Jobless Claims
8:30 am Import/Export Prices
10:30 am Natural Gas Report
8:30 am Retail Sales
8:30 am Producer Price Index
10:00 am Consumer Sentiment
Next week is the planned entry for the SPY September monthly Iron Condor. Monday will be 39 days to expiration, so we will look to enter the position sometime next week depending on overall market conditions and available credit.
For those unfamiliar with the strategies we trade, the trade management guidelines for all the Couch Potato Trader plays were most recently published on August 20, 2015, and can be found here:
Link to Articles
Trade updates will be posted as appropriate.
As always, stay keen on your risk management and trade carefully,