It was a quiet end to the trading week as the Donald Trump's presidency reaches its first 100-day milestone.
After the sharp rally Monday following the French election, the broad market ended the last week of April in a consolidation mode. The benchmark index SPX closed down -4.57 points at 2384.20, -.19%. The statistics since the US Presidential election in November are impressive, the SPX has rallied +11.43%.
SPX 6 month chart
The CBOE's volatility index, VIX, continues to hover at 10 year lows. After reaching a new 10 year low on Tuesday, the VIX closed yesterday up just a tiny bit at 10.82, +.46. This index tends to be a gauge of fear by investors; it's hard to believe with all the uncertainty over tax and healthcare reform in the US and the North Korea continuing conflict that the VIX remains this low.
VIX 10 year monthly chart
We do not have any open positions on this weekend; with VIX at record-low levels there was not sufficient credit for a decent entry on the SPX weekly Iron Condor. Rather than take on unnecessary risk, we chose to keep cash as our position and hope for a better entry scenario next week.
Next week's economic news is highlighted below:
8:30 am Personal Income & Outlays
9:45 am PMI Manufacturing Index
10:00 am ISM Manufacturing Index
10:00 am Construction Spending
9:00 pm China's Manufacturing PMI
FOMC Meeting Begins
8:15 am ADP Employment Report
10:30 am EIA Petroleum Status Report
2:00 pm FOMC Meeting Announcement
8:30 am International Trade
8:30 am Productivity & Costs
8:30 am Jobless Claims
10:00 am Factory Orders
8:30 am Monthly Employment Situation Report
For those unfamiliar with the strategies we trade, the trade management guidelines for all the Couch Potato Trader plays 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,