Sorry to be late with the blog, but my web site had some back room problems this afternoon and I could not get into the admin pages.

This morning the SPX appeared determined to break through the 200 day moving average at $1108, but just fell short at $1106. From about noon on, the markets slowly traded downward, giving back virtually all of the early gains. RUT was unique among the major indexes in that it retained some positive gains, closing up $3 at $652. SPX traded up to $1106 and then gave it all back, closing down $2 at $1090. Moody's downgraded Greece debt this afternoon and that didn't help, but the market was already trading down. Trading volume remains low, which argues against the substance of any possible bullish break-out like this morning's run upward. Trading volume was up 10% on the NYSE, but flat on NASDAQ and also flat on the S&P 500 stocks. The market appears to be holding in this basing pattern.

My iron condor positions are sitting pretty with the June iron condors on RUT standing at a P/L of +$756 with position delta = +$16 and theta = +$368. The July position stands at a P/L of +$1,180 with position delta = -$5 and theta = +$96. But I expect today's market volatility will continue this week, so it would be a mistake to assume these trades are safe.

Comments (0)