The "buy the dip" crowd came out late in the day Friday, saving the week once again.
The broad market squeaked out gains heading into the close Friday, extending a weekly advance as comments from Janet Yellen and other key Federal Reserve officials confirmed growing expectations of a March interest-rate increase.
In a speech yesterday afternoon, Yellen stated at their meeting later this month, the Federal Open Market Committee will evaluate whether employment and inflation are continuing to evolve in line with their expectations, in which case a further adjustment of the Federal funds rate would likely be appropriate.
The FOMC's next meeting is scheduled to begin March 14.
The benchmark index SPX closed up 1.2 points at 2,383.12. The index posted its biggest decline of 2017 on Thursday, a day after notching its biggest gains a day earlier, when it closed a few points below 2,400. For the week, SPX posted a 0.7% gain, its sixth consecutive week of gains.
We have no open positions on this weekend. We tried for two days to enter the SPX weekly Iron Condor, with no fills on what I considered to be the best possible trade entry. I am not going to risk your capital, or mine, entering a trade that is outside my comfort factor "just to enter a trade". We must be patient and wait until a better entry opportunity presents itself.
SPX 6 month chart
The volatility index VIX closed down 7.2% Friday at 10.96, way below its historical average of 20.
VIX 6 month chart
Next week's economic news is summarized below:
10:00 am Factory Orders
3:00 pm Fed's Neel Kashkari speaks
8:30 am International Trade
8:15 am ADP Employment Report
8:30 am Productivity & Costs
10:30 am EIA Petroleum Status Report
8:30 am Jobless Claims
8:30 am Import/Export Prices
8:30 am Employment Situation Report
For those unfamiliar with the strategies we trade, the trade management guidelines for all the Couch Potato Trade strategies 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,