Day 22:
The stock market was stuck in a very frustratingly tight trading range for the whole day.
The positive surge following Donald Trump’s “Phase 1 Deal” with China wore off quickly as news coming out from China clearly showed that, there is NO DEAL.
It is very clear that China has not committed to anything and wants to drag it out at least until November.
I think the market is so confused that it does not know what to make of it.
I mean that is all Donald Trump could do this whole past weekend, boasting about the “Lovefest” between him and China. And how this deal is the greatest deal ever.
Going from that, to knowing that China does not feel the same way, has every one confused.
It is impossible to know which way the market will go at this point.
But it is safe to say that it will continue to trade in a tight range until more concrete deal has been struck.
I did not make any trades today, mostly just observing the market.
Now it looks like tomorrow will be a good time to make a few Iron Condor trades.
I am looking at a couple plays:
- VXX - Any time VXX goes below 23 is a good time to look at selling a Vertical Put.
- SPX - If the market opens higher tomorrow and SPX goes towards the 3000 level, then I would be looking at selling a Vertical Call at slightly higher than the previous All Time High.
Let’s see how it goes tomorrow.