The markets cooled today after seeing the loss of 39 thousand jobs in the ADP payroll report for September. Economists were expecting an increase of 18k. This has exacerbated concerns about Friday's nonfarm payrolls report; the consensus prediction from the experts is for an increase in unemployment to 9.7% and some are speculating it may go higher. Tomorrow's unemployment claims report may push the market somewhat but most traders will be waiting for Friday's jobs report before taking on additional long positions. Markets opened downward this morning and traded sideways throughout the day with only modest net changes in the market indexes. SPX closed down less than a dollar at $1160 while RUT lost $4 to close at $685. Trading volume decreased across the board with a decline to the 50 dma at 3.4 billion shares for trading in the S&P 500 stocks; similarly, trading was down 18% on the NYSE and down 5% on NASDAQ. Gold hit record highs today, reflecting continued concerns about governments debasing their currencies both to stimulate exports but also to solve their sovereign debt problems.

My iron condors for Oct and Nov are both underwater and hedged appropriately. The Oct condor's position delta = -$40 and theta = +$173, representing a reasonable net level of risk. November's Greeks are delta = -$32 and theta = +$54. Both theta/delta ratios are good to fair, especially in light of the hedge options in both positions. A strong market move upward is the danger to both positions; uncertainty concerning Friday's jobs report will likely contain any market advances tomorrow, but on Friday? But, as delta neutral traders, we have hedged our positions; if the market moves up strongly, that will likely lock in a net loss for our October condor, but the hedges should contain that loss.