Buy the dippers are alive and well.

It appears that the bulls are battling their way to recovery; Friday represented the sixth straight advance for the major indices.

The benchmark index SPX closed up just slightly yesterday, +1.02 points at 2732.22. The close was well off the day's high of 2754.42, dropping back after news was released concerning the indictment of 13 Russian nationals for meddling in the U.S. Presidential election. Yesterday's close represented the longest six-day advance since January, and the weekly gain of 4.3% was the best since January 2013.

SPX 6 month chart

The "fear index", VIX, closed basically flat from the previous day, +.33 points at 19.46. Looking at the 52-week range for the VIX tells the story of the lack of, and presence of, volatility we've seen. The trading range over the last year has been from the low of 8.56 to the high of 50.30 on February 6.

VIX 6 month chart

We do not have any open positions on this weekend, there is still too much volatility for the short term trades such as the VXX weekly call spread and the SPX weekly Iron Condor. We are hoping to re-enter one, or both, of these trades into the trade plan soon, but there has to be a decent risk:reward before jumping back in to the weeklys.

Next week's economic news is summarized below:

Monday, February 19

Markets Closed; US President's Day Holiday


9:45 am PMI Composite Flash Index

10:00 am Existing Home Sales

2:00 pm FOMC Minutes


8:30 am Jobless Claims

10:00 am Fed's William Dudley speaks

11:00 am EIA Petroleum Status Report


10:15 am Fed's William Dudley speaks

1:30 pm Fed's Loretta Mester speaks

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,

Dot Hazlin