Markets pulled back significantly today and that certainly caused many traders to breathe a sign of relief. Yesterday was a scary day in the markets. Pull up a one minute chart of the S&P 500 from yesterday; it is unusual to see a one minute chart that is so steadily headed in one direction with almost no deviations at all for an entire trading session. But today was more normal with a lot of choppy sideways trading, but it stayed in the positive column and then traded strongly in the afternoon. SPX traded up $10 to close right at resistance at $1335. RUT likewise closed at resistance at $775, up $10 on the day. The fact that SPX didn't blow right through resistance on its way back north is significant, in my opinion. It means that we may not be going over the cliff, but don't be complacent. It's still dangerous out there. VIX dropped back to 18.1% which is somewhat reassuring.

There was no significant economic data released today. Moody's downgraded many banks last evening and the significant news was that bigger downgrades were priced into many of those banks. So today saw these stocks trading sideways or only minimally lower.

My July iron condor on RUT stands at a P/L of +$2,420 with delta = -$16 and theta = +$34 on 20 contracts. Several of my clients have asked me about closing this position and opening a new trade for July. There are many feasible ways to successfully trade options. My approach to non-directional trading isn't "the answer". I have traded condors much more aggressively in the past and it is certainly possible to aggressively roll spreads up and down and make much larger gains - but this also exposes you to much more risk. And every once in a while, the market whipsaws and runs over you. My trading style is probably too boring for many traders, but it makes a steady return without a lot of stress. After all, the Flying With The Condor™ is up 29% so far this year. That's not chicken feed, as my dad used to say (I have never fed chickens, so I don't know about these things). If you seek excitement, our services aren't for you, but if you want to turn your trading into a money-making business, check out Flying With The Condor™ and our newly released DVD series, The Ultimate Options Course.

Have a great weekend. Remind yourself this weekend what is really important. Hint: it isn't money.