The markets traded modestly higher today on low trading volume, but a late sell-off in the last few minutes of trading erased most of the gains. SPX closed at $1260, up about $1. RUT gained less than a dollar to close at $790. Trading in the S&P 500 stocks actually declined from yesterday's already low levels to 1.5 billion shares. Trading dropped 7% on the NYSE and dropped 1% on NASDAQ.

My Jan SPX iron condor stands at -$1799 with delta = -$104 and theta = +$145. This position is beginning to be pressured on the call side with delta of the $1300 calls at 16. The Feb iron condor on RUT stands at a P/L of -$600 with delta = -$38 and theta = +88. This condor is well positioned so far with the $860 call delta at 12 and the delta of the $690 puts at 11.

The steady push upward by this market even during these low volume holiday weeks is remarkable. It certainly appears that next week may usher in a strong bull market to begin the new year. But the universal bullish attitude I am hearing and reading worries me from a contrarian perspective. However, this may be the classic, "Don't fight the Fed" situation. QE II does appear to be pushing this market higher. Whether you or I agree with the Fed's tactics is really irrelevant. I have a couple of stock condors and one bearish trade in my directional portfolios. I think I may close them this week before everyone comes back from the holidays and begin to push this market in earnest.