The major market indexes recovered yesterday's losses in a strong upward move today. SPX ran up $18 to close at $1198, just below the $1200 resistance level. RUT ran $17 to close at $737, approaching the highs of early November. These moves were motivated by favorable economic reports. Initial unemployment claims dropped to a two year low at 407k, down 34k from last week. Continuing unemployment claims came in at 4.18 million, down from last week's 4.32 million. The consumer sentiment survey from the University of Michigan moved up to 71.6 from last month's 69.3. But, on the other hand, new home sales dropped 8.1% and durable goods orders declined 3.3%. However, this bullish move must be tempered with the low pre-holiday trading volume. Trading in the S&P 500 stocks dropped to 2.7 billion shares, well below the 50 dma. Trading on the NYSE was down 20% and declined 14% on NASDAQ.

My Dec condor on RUT at 660/670 and 790/800 is very well positioned with a P/L of +$800 and a position delta of -$12 and theta = +$147. I initiated an iron condor on SPX this morning at 1060/1070 and 1280/1290 for a credit of $3,100 on 20 contracts. The position delta is -$33 with theta = +$64. I gave myself a bit more safety margin on the put side just in case the Euro debt situation or the Korean conflict becomes a greater concern for traders.

You have my best wishes for a happy and meaningful Thanksgiving with your families. It is important and healthy to pause often and remind ourselves how fortunate we really are.