News of increased unemployment claims this morning (up 31k) plus the largest gain in the PPI since October 2008 (1.4%) had the market concerned about inflation and a possible raise in rates by the Fed in response. But positive news came with the Philadelphia Federal Reserve manufacturing index up in February by 15%. The market traded pretty much sideways through most of the day with the SPX and RUT both right at strong resistance levels. But the afternoon trading inched up and resulted in both the SPX and RUT closing above resistance, but not strongly and on reduced trading volume - so is it really a break out or will it pull back in the next few days? RUT closed at $629, up over $4, and somewhat above its resistance level at $625. SPX closed above the $1100 resistance level at $1107, a gain of a little over $7.

Even though a case could be made for the markets stalling here in this area of strong resistance, I decided my March iron condor was too close to the edge. I closed the 20 contracts of the $640/650 calls for $3.40 and rolled up to 660/670 for a credit of $1.23. I also closed the 20 contracts of 520/530 puts for $0.22 and rolled up to 570/580 for $0.80. I left the April $640 calls on (now up by $1200) until I am sure this upward move has ended or at least slowed. This brings my Mar condor to a P/L of - $2,050, delta = +$16 and theta = +104. The profit potential for this trade is now reduced to about $2300 - not great, but still in the game. This has been a crazy month! RUT was trading at $636 when we opened this trade, dropped 9% to $580 and then rose 8% to today's close at 629. These are the unusual months that your trading strategies must be able to survive for trading the condor long term to be feasible.

On a more positive note, today's close for RUT at $629 makes it reasonably certain that our Feb 540/550 put spreads will expire worthless (RUT settles in the morning); you may recall we closed the calls last Friday, so our Feb iron condor gained $2,794 or 17% on capital at risk. Next week, we will start to look at entering our April condor.