Pending home sales for November decreased 16%. This news eclipsed more favorable news of factory orders increasing 1.1% in November. The markets traded in choppy, sideways fashion all day. RUT closed down $2 at $638, while the SPX closed at $1137, up $4. Trading volume remains below the averages of 2009, although up almost 50% from the past couple of holiday weeks. Most of the talking heads appear to be predicting a bullish 2010, but it appears to me that the economic news will most likely continue to be positive, but indicative of a slow recovery - not the kind of news that is likely to fuel a strong bull market run.

I began my February RUT iron condor position today with 10 contracts of the 690/700 calls for $1.10 and 560/570 puts for $0.86. I will add to that position over the next few days, perhaps even into next week.

My low probability condor for January is still underwater, but the large positive theta is beginning to pull it up; the P/L is now -$730 with delta = -$69 and theta = +$151. The high probability condor has now moved slightly into the black at +$40, delta = -$137 and theta = +$302. Barring any strong price moves, the $450/day of theta decay will continue to help these positions.