Markets Close Lower For Short Week, A Light Jobs Report, Our SPX Iron Condor Expires For Profit

This week's April06 1380/1385/1435/1440 SPX Iron Condor Spread for the Weekly Trading Service expired worthless for full profit of +8.70% in 3 days. The Weekly Trading Service is now back to 100% cash.

The S&P touched 1422 this week but then reversed course and found expected support in the high 1390's. We took the opportunity to open the Iron Condor well above the 1422 high with the put side located under well defined chart support and moving averages. We expected the markets to move higher this week into the employment report and earnings next week. But the opposite happened and markets ground lower through the end of the week after printing a new recent high for the S&P and Nasdaq.

Today's Jobs report will not help things next week. The appetite for risk is waning and the S&P is at a pretty critical level between 1390-1400. If the 1390's give way than the next stop will be the 1370's which is the location of solid chart support, the lower Bollinger Band, and the rising 50 Day Moving Average.

I don't expect market to fall off a cliff as job creation slowing pressures Bernanke for additional QE which is the only reason the market fell this week - no more punchbowl. Furthermore, the jobs number was not horrible and the Unemployment Rate fell to the lowest in 3 years. Solid support lies in the 1350 area for the S&P so any pullback will be supported in that area. Plus, S&P 1350 would be an approximate 5% pullback from the recent highs. Earnings releases begin next week as well which should serve to stabilize markets and most likely provide a decent bid for higher prices.

We are now ready to start releasing new Monthly Trading Service positions for April including turning the current SPY spread into and Iron Condor. 2 weeks remain in April's expiration cycle (April is a 5 week expiration cycle) and we are ready to start deploying some more of our uncommitted capital. We currently have a RUT Iron Condor and a SPY Bull Put Credit Spread open in the Monthly Trading Service portfolio, both of which are in great shape.

Be patient and don't worry about missing a trade as this market has punished trade chasing for the last few months.

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