It appeared the markets decided to pause today and wait for the jobs report tomorrow morning. SPX opened weakly this morning but erased some of those loses to close down modestly at $1274, down $3. RUT lost $4 to close at $792. But volume continues to track upward; 4.2 billion shares of the S&P 500 stocks traded today, up from yesterday and above the 50 dma at 3.3 billion shares. Trading volume was up 5% on the NYSE and up less than 1% on NASDAQ. It seems like the market is basically in bullish mode but there is some trepidation concerning tomorrow's jobs report. It is hard to predict the reaction; some of this good news is already priced into the market so the report will have to clear some hurdle of pleasant surprise to fuel the market higher. It will be interesting to see which way it goes.

My Jan SPX condor is sitting on the edge of adjustment with the $1300 calls sporting a 22 delta. This market appears to me to be incredibly bullish (too much so, I think, but that is another story). So I hedged the Jan SPX position with two Jan $1275 calls at $12.70. This brought my Greeks in line with delta = -$15 and theta = +$209. The Feb RUT condor stands at a P/L of +$220 with delta = -$27 and theta = +$91. So now we wait to see what happens tomorrow morning. Will all of these bulls run for the hills? Or will the bulls get the good news they seem to think is a near certainty? Or will the Fed hold the markets up regardless of the jobs numbers?