Most of you realize I am very skeptical of the utility of CNBC. Today was a good example. Everybody was upbeat and looking forward to wonderful things ahead. Economic recovery, strong earnings, all is bliss. Last week you would have been tempted to slice your wrists after watching for a few minutes. The point to remember is this: one of the key success factors in trading is emotional control. That is why trading systems and their rules are so helpful - they keep our emotions in check. If you are a delta neutral income trader then this message is doubly important; I really don't care where the talking heads think the market is heading; I am just playing what the market does today.

The ISM manufacturing data this morning was a large boost for the markets. That index reported its highest number (58.4) since 2004. That manufacturing data together with a weaker dollar appeared to encourage traders. Another positive sign was strong buying right into the close of trading today. The RUT closed at $609, up over $7. The SPX ran up over $15 to $1089.

My Feb RUT iron condor now stands at a P/L of +$2,000, delta = -$33 and theta = +$232. This condor is now almost perfectly positioned at about plus or minus one standard deviation each way and theta is building nicely. On the other hand, my adjustments have narrowed the field here so it is likely we will be closing this condor early unless the market just trades sideways from here.

My March RUT iron condor has also moved into the black with an overall P/L of +$960, delta = +$27, and theta = +$72. In spite of my warnings above, we are all tempted to be looking forward - just don't act on it. In that spirit, is the correction over?