The late Harry Caray of Cubs baseball fame here in Chicago made "Holy Cow" one of his trademarks. And it certainly would apply to today's market. A deal was reported out of Europe this morning to address the European sovereign debt issues and the market went ballistic. SPX gained $43 to close at $1285 while RUT closed up $38 at $765. SPX sliced through its 200 dma at $1274. The only sign of weakness was giving back about $10 in the last few minutes of trading. The VIX gapped down at the open and closed at 25.5%, the lowest level since early August when the market collapsed. Trading volume surged with over 4.9 billion shares of the S&P 500 trading. Trading volume was up 27% on the NYSE and was up 32% on NASDAQ.

Third quarter GDP grew at 2.5%, a nice increase over the second quarter's anemic 1.3% growth. That helped calm some recession fears. Unemployment remains stubornly high with 402k new unemployment claims, flat from last week. Continuing unemployment claims dropped by 96k to 3.6 million.

The market's surge forced me to re-establish my hedges on the November iron condor (I wish I had left the hedges in place from Monday); I also rolled the put spreads up to 660/670. This adjusted our Greeks to an acceptable range with delta = -$19 and theta = +$96, but we remain underwater.

Market analysts have been almost unanimously surprised with the extreme strength of today's rally with several analysts predicting a pull back in coming days. But getting in front of this freight train could be dangerous.