Iron Condor Strategy
Mar 04, 2024
THE WEEK
We are still seeing a nice up trending Market. Late in the week more money moved into the Market. The Price/Action had stalled for six days on the newest 52-week high. But the new money flowing into the Market pushed prices well over the 52-week high.
My experience is this pattern is very common as the Market continues up. Think of the 52-week high as a strong magnet attracting prices to its level. It takes a lot of energy to break away from the pull of the magnet. In the stock Market the energy o pull away is traders buying positions with new incoming money. For the price not to fall back to the 52-week high we will need to see the high buying volume continue this coming week.
LOOKING AHEAD
This coming week is the start of the government economic announcements for February. As I have previously discussed, for the past three years these announcements have seen caused reactions by the trading herd. Many times the reactions don’t correlate to announcement data. That is confusing for a trader who bases trades on logical rather than emotions of either FEAR or GREED. Fed Chairman Powell is also testifying on both Wednesday and Thursday. Sometimes the Market reacts to what he says; sometimes it doesn’t.
HOW AM I DOING?
It was a decent trading week. When I saw the stall-out at the 52-week high, I had traded some iron condors. Iron Condor trades work really well when the Market is sideways. My problem was on Friday when prices jumped up making one of verticals loose big time. Fortunately, I saw the jump up plus I got a lot of texts and emails from my trading buddies alerting me of the movement. I closed the short log of the vertical in trouble. I left the long position in place a few more hours and closed it for a nice profit.
I say this loud and clear: I am so grateful for all the traders
in our Investing Buddies group – for their shared insights and for the alerts sent to me.
THANK YOU!
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