Record highs reached two days in a row; third straight weekly gain.

The broad market closed higher Friday, powered for the second day in a row to close at record highs. The continuing rally was sparked by President Trump's comments on Thursday of an upcoming "phenomenal" tax reform; details not yet announced. The benchmark index SPX closed +8.23 points at 2316.16, the second record finish in a row and the third consecutive weekly gain.

Below is the open position status:

We only have position open this weekend; our stop loss was hit yesterday on the weekly Iron Condor so the position was closed as per the guidelines.

SPY Monthly Iron Condor for March

This position was opened on Monday, February 6. Position details below:

- SOLD SPY March 235 Call, .60 credit.

- BOUGHT SPY March 240 call, .15 debit.

- SOLD SPY March 219 Put, .90 credit.

-BOUGHT SPY March 324 Put, .55 debit.

Order was filled as an "Iron Condor" for $.80 net credit (all four legs) .

Margin/Risk is calculated by the width of the wings ($500), less credit received.

Margin/Risk for this trade: $420.

Target Gain: 10%of margin/risk.

Max loss: 15% of margin/risk.

Below is the risk graph of the position as of the close Friday:

SPY March Iron Condor:

Below is the SPY chart showing the short strikes:

SPY 6 month chart

Trade Management:

The guidelines call for the position to remain open until target gain is reached, as long as SPY stays between the short strikes. They also call for exiting at the pre-set max loss, or if SPY reaches either short strike. It is recommended to have a "good to cancel" conditional order in to exit the position for target gain or max loss. Please follow your broker's specific guidelines on the setup of conditional orders as they can vary by broker.

As of the close, the position is down $-22, but it's still early in the trade so we will continue to monitor and with any cooperation from the market we will get a pullback soon that should help the play.

Next week's economic news is highlighted below:


8:30 pm China CPI Report


8:30 am Producer Price Index

8:50 am Fed's Jeffrey Lacker speaks

10:00 am Fed Chair Janet Yellen speaks

12:50 pm Fed's Dennis Lockhart speaks


8:30 am Consumer Price Index

8:30 am Retail Sales

8:30 am Empire State Manufacturing Survey

9:15 am Industrial Production

10:00 am Fed Chair Janet Yellen speaks

10:30 am EIA Petroleum Status Report

12:00 pm Fed's Eric Rosengren speaks


8:30 am Housing Starts

8:30 am Jobless Claims

8:30 am Philadelphia Fed Business Outlook Survey

Next week is the planned entry for the RUT March Iron Butterfly. Depending on market conditions and available credit, we will look to open this position sometime early next week.

Trade updates will be posted as appropriate.

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

Dot Hazlin