Mubarak's resignation boosted markets to new multi-year highs. SPX closed up $7 to $1329 while RUT closed at $822, up $9. RUT has not been at this level since October 2007. But trading volume dropped off from yesterday's highs. Trading in the S&P 500 dropped below the 50 dma to 3.3 billion; volume dropped by 7% on the NYSE and decreased 18% on NASDAQ. Volatility dropped to 15.7%, close to the lows of mid-January and late December. The bull market in equities has been fueled by the Fed and shifts of capital out of the bond market back into equities. The rise of commodity prices will eventually take its toll on corporate profits and eventually the FOMC will start to increase interest rates. But the street is littered with the bodies of traders who have tried to short this market. It is hard to argue with the logic of a correction being overdue, but so far this market just shrugs off bad news. Egypt is an excellent example; the situation in Egypt is far from resolved, but the market has continued to drive higher.

My Mar RUT iron condor stands at a P/L of +$260,with a position delta of -$59 and position theta = +$95. I established a second Mar condor for RUT earlier this week at 730/740 and 860/870, and that position now stands at break-even with delta = -$87 and theta = +$122. Both of these positions are beginning to be squeezed by this bull market. We'll see what next week brings.

Enjoy the weekend.