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The markets chopped sideways today, trading up and then back down and finally closing higher for the day. SPX closed at $1361, up $3 and RUT edged lower by $1 and closed at $829. Trading volume was up modestly with 3.1 billion shares of the S&P 500 trading; this is just above the 50 dma at 2.9B. Trading volume was up 11% on the NYSE and up 2% on NASDAQ.
The RUT settlement price for February is $833.16 so the remaining spreads in my RUT Feb iron condor expired worthless for a net gain of $2,200 on 20 contracts or 13.3%. This brings our gains in the Flying With The Condor™service thus far in 2012 to 9.8% - not a bad start to the year. The Mar position on RUT at 730/740 and 860/870 remains hedged with a P/L of -$1,720 with delta = -$35 and theta = +$119.
Enjoy the long weekend. For those of you in the New York City area, come by and see me at the Traders Expo. We can stop for a drink and chat. I will be signing books at the Traders Press booth Monday afternoon.
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The markets opened trading largely sideways today, but the mood darkened around noon and the major indexes all closed down for the day. Perhaps more significantly, trading volume increased today; this may signal some institutional profit taking. SPX closed down $7 at $1343 and RUT lost $7 to close at $814. Trading in the S&P 500 jumped up to 3.1 billion shares; trading also increased on the NYSE, up 9%. Trading volume declined 4% on NASDAQ. VIX jumped up 1.6 points to 21.1%.
The Empire Manufacturing Survey came in at 19.5 for February, up markedly from January's 13.5. Industrial production was flat for January and capacity utilization was also nearly unchanged at 78.5%.
My Feb iron condor spread on RUT stands at a P/L of +$2,000 with delta = +$35 and theta = +$345. The call spreads and the put spreads are both about 2.5 standard deviations OTM. My Mar condor stands at a P/L of -$1,060 with delta = -$70 and theta = +$164.
Many analysts have been predicting a slight correction in this market since early February; perhaps we are seeing the beginnings of that correction?
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We ended last week worried about Greece; on Monday, all of those pesky problems have been solved. Of course, I am being sarcastic. The volatility of these markets over the past few years has been extremely challenging for traders. The markets jumped at the opening today and stayed pretty steady throughout the session. But SPX appears to be finding it tough to hold much above $1350. Today it closed at $1352, up $9. RUT ran up $11 to close at $825. Trading volume dropped off today with 2.5 billion shares of the S&P 500 trading; trading volume dropped 8% on the NYSE and dropped 10% on NASDAQ.
No significant economic reports were issued today.
My Feb iron condor on RUT stands at a P/L of +$1,500 with delta = -$46 and theta = +$477. The Mar position is underwater by $1,760 with delta = -$95 and theta = +$148. Now we wait to see what tomorrow brings - let's see: markets down Friday, and up Monday; tomorrow must be a down day.
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The markets spent the day underwater, but a strong rally in the last 30 minutes of the trading session repaired almost all of the damage. SPX closed down one dollar at $1351 and RUT closed at $821, down $4. Trading volume bumped up to the 50 dma in the S&P 500 stocks with 2.9 billion shares. Trading on the NYSE increased 9% and spurted up 32% on NASDAQ. Retail sales increased 0.4% in January, but concern about the precarious situation in Greece appeared to weigh on the markets. Notice how SPX once again seemed unable to penetrate that $1350-$1355 area. Breaking through and holding above that level will be a strong bullish signal.
My Feb RUT iron condor spread at 770/780 and 850/860 stands at a P/L of +$1,940 with delta = -$1 and theta = +$304. The Mar position at 730/740 and 860/870 stands at a P/L of -$1,260 with delta = -$92 and theta = +$155. The Mar position is sitting right at the tipping point to require adjustment. We'll see if the bulls reassert themselves tomorrow - that last half hour today looked pretty strong...
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European finance ministers rejected Greece's austerity plans today, making it more likely that Greece will default on their bonds. The markets took it badly. SPX lost $9 to close at $1343 and RUT closed at $813, down $12. But this wasn't the panic selling one might have expected; trading volume actually dropped from yesterday with 2.7 billion shares of the S&P 500 trading. Trading volume dropped 2% on the NYSE and dropped 18% on NASDAQ. VIX spiked upward two points to close at 20.8%.
The University of Michigan consumer sentiment survey reported 72.5 for February, down a bit from January's 75.0.
My Feb RUT condor stands at a P/L of +$460 with delta = +$15 and theta = +$354. My Mar RUT position stands at -$1,460 with delta = -$64 and theta = +$138. I removed the call hedges from the March position today. The Feb condor is nearly perfectly delta neutral and theta is building rapidly.
Enjoy your weekend. It looks like I will be shoveling snow this weekend in Chicago.
