Today was a pretty slow day. The S&P gapped up over the weekend near the all time highs and hung out there for a while, went down a little and back up.
The Federal Open Market Committee (FOMC) spoke at 2pm, but nothing happened. Overall, a very quite day.
For days like this, strategies like the Iron Condor which is a neutral position is profitable. However, the build up in the last few weeks, the markets, especially the S&P500 has been steadily climbing.
With the threat of inflation ever looming and this being another earnings week, along with the release of some numbers like consumer confidence & unemployment – it’s a potential landmine.
I decided to play it very safe and not enter into my normal positions trading NDX or RUT.
I’ll likely look for opportunities to enter positions on the Call side as I don’t believe the market will go into a sharp buying spree. But I’m very cautious about a drop.
Drops can happen fast. And they can drop deep. I don’t want to be caught in it.
The market will still be there tomorrow, or next week. And so will the opportunity to make more money. There was no reason to rush today. Patience.