Buying the dip worked once again! The markets opened up strongly today after posting a lot of red ink last week. SPX gained $27 to close at $2104 and RUT closed up $16 at $1223. Volatility contracted with the VIX dropping a full point to 12.2%. But don't confuse this with a strong bullish move. Trading volume declined with 2.0 billion shares of the S&P 500 stocks trading. Volume was flat on the NYSE and declined 12% on NASDAQ. So the low trading volume, sideways trading continues. One of these days, buying the dip will not work...

There wasn't any significant economic data reported today to account for the bounce higher. The main economic news expected this week is a continuation of earnings announcements, although most of the popular names that inspire speculation have already reported.

I closed my September iron condor position last week for a 20% gain. I only have the put spreads in play so far for the October position, but they stand at a net gain of 2.5% today. If the market can trade back closer to the upper edge of the trading range, I will sell the call spreads to complete the October iron condor position. The Flying With The Condor™ service stands at a net gain of 38% for the year.