The volatility of recent markets continues to amaze me. The major indexes all traded up to within striking distance of their 2010 highs within just a few hours of trading this morning. SPX closed up $26 at $1206, close to its April high of $1217 and its November high of $1223. RUT closed at $743, up $16. This actually exceeded the high closes in April at $742 and November at $737. Trading volume was still high, but slightly off of yesterday's record levels. 3.7 billion shares of the S&P 500 stocks traded today, down from yesterday but still above the 50 dma. Trading was down 9% on the NYSE and down 8% on NASDAQ.

The economic news was modestly positive with the ISM manufacturing index at 56.6 for November, about flat with October. Construction spending was up 0.7% on October, but economists were predicting a decline of 0.5%. ADP reported an increase in private employment of 93 thousand jobs. The FOMC released their Beige Book this afternoon, but it had no effect on the markets one way or the other. The volatility index dropped about 10% today.

My Dec condor on RUT stands at a P/L of +$1,320 with position delta of-$27 and position theta = +$199 with 15 days left to expiration. The 790/800 call spreads appear to be safe enough for now with a delta of 7, but a bullish run like we had in mid-Sept to mid-Oct could get there. The Jan condor on SPX stands at a P/L of -$1800, position delta = -$34 and position theta = +$95. The delta of the SPX $1280 calls hit 16 today so this position may require adjustment soon.