The markets continue to hold up rather well. SPX traded off a few points this morning but then recovered quickly - buying the dip still works! SPX closed up $2 at $1997 and RUT gained $7 to close at $1172. Trading in the S&P 500 stocks dropped a bit at 1.7 billion shares (the 50 dma continues to decline). Trading volume on the NYSE increased 3% but volume declined 6% on NASDAQ. Volatility is flat with the VIX unchanged at 12.8%.

Initial unemployment claims came in at 315 thousand this week, up eleven thousand over last week. Continuing unemployment claims rose nine thousand to 2.49 million (essentially unchanged). This increase in initial claims is pretty small and well within the range of scatter week to week in this number, but the S&P futures traded off this morning after this report was released. SPX opened lower at $1993 and traded down to $1986 by about 10:30 am ET, but then the steady  recovery began, and SPX rose the rest of the day, finally breaking into positive ground just 15 minutes before the close. The predictability of this "buying the dip" behavior is beginning to worry me. Whenever it becomes this obvious, the trading gods like to throw a wrench into the works...

I took advantage of the dip and sold my SPX Nov put spreads at a reasonable price; I sold the call spreads yesterday. It's early to enter November, but since I closed the September position early, I had capital laying around doing nothing. Don't you hate that?