SPX spent much of today modestly underwater, but the last two hours of trading became ugly. SPX gave up $19 to close at $1355 while RUT closed at $773, down $16. Trading volume of the S&P 500 stocks jumped up to 3.0 billion shares and trading volume increased 16% on the NYSE. Trading increased 17% on NASDAQ. VIX increased to 17.9%, reflecting increasing concern on the street that the fiscal cliff cannot be avoided.

Retail sales dropped 0.3% in October and the PPI decreased 0.2% in October. Since neither of these reports were really very negative, one has to assume the selling is related to Obama's recent statements taking a hard line on tax increases. Many on the left appear to think taking the country over the fiscal cliff is good politics.

My Dec iron condor on RUT stands at a net gain of $820 or +5% with position delta = +$59 and position theta = +$55 (on 20 contracts). The pressure is increasing as the markets fall; the theta/delta ratio is near 1:1 and the delta of the 720 put is 16. If the carnage continues tomorrow, we will need to adjust this position.