It appears that the markets have simply replaced a higher sideways trading range with a lower sideways trading range. For several months, SPX wandered between $2040 and $2130, and now it appears that the new trading range is $1900 to $2000. Before the correction, one could argue that the S&P 500 was becoming overpriced with price to earnings and price to dividends ratios near historical highs. Those ratios remain slightly above historical averages, but maybe this correction was a healthy adjustment. And the longer we tread water, the more in-line those ratios will become. The markets opened higher this morning, but then declined to lows around noon. But then the bulls revived themselves and recovered most of the early losses. SPX closed at $1939, down $4, while RUT lost $3 to close at $1140. Trading volume declined across the board with 1.9 billion shares of the S&P 500 trading. Trading volume declined 17% on the NYSE and declined 21% on NASDAQ.

There weren't any significant economic data reported today, and that may have contributed to the lackluster trading day.

On the Friday before the flash crash on Monday, 8/24, I closed the October position we had on RUT for an 11% loss. That took the year to date gains on the Flying With The Condor™ service to +34%. I recently opened a new October iron condor on RUT positioned at 950/960, 1040/1050 and 1240/1250 (the put spreads are split over the 950/960 and 1040/1050 strikes). This position now stands at a net gain of $76 per contract or +9%. Our November iron condor on RUT at 960/970 and 1280/1290 stands at a net gain of $63 per contract or +7%. If we were to close both positions today, we would stand at a net gain of 40% for the year; maybe we should just go lie on the beach for the rest of the year. No, that sounds like retirement in the rocking chair - too boring.