Investor's Business Daily changed its market reading to "market in confirmed uptrend" after yesterday's strong performance. Stocks traded up across the board today, although trading volume remains below average. Small cap stocks had led the recent gains, outpacing the large stocks typical of the S&P 500. RUT traded up almost $6 to close at $648 today, while the SPX rose a little less than $3 to close at $1118. The SPX appears to be struggling to break through $1120; it was above $1120 a couple of times today, but was pulled back. By contrast, the Russell 2000 index is only one dollar short of its 52 week high. The S&P 500 would have to rise over $30 to reach its 52 week high.

This March expiration month has been a very challenging month for delta neutral traders. This is one of those months when good traders are happy to break even or at least minimize their losses. I opened my Mar condor on January 21 with the RUT at $628; it proceeded to drop over $42 to $586 and has now roared back upward by $62 to its close today at $648. I rolled my Mar 660/670 calls up to 670/680. The trade now stands at a P/L of -$3,140, delta = -$28 and theta = +$153. This last adjustment moved our Greeks into a good position, but even if the market trades within the channel formed by this trade for the next couple of weeks, this trade will just barely break even.

The Apr condor stands at a P/L of -$805, delta = -$79 and theta = +$79 after adding a May call to adjust the position earlier today.