The markets bounced back strongly today with steady, significant increases on all of the major indexes. However, trading volumes were mixed with a 4% decline on the NYSE and a 13% increase on NASDAQ. Trading volume for the S&P 500 declined to 4.8 billion shares, down from yesterday's levels, but still above the 50 day moving average of about 4 billion shares. RUT closed at $738, up over $15 on the day, while SPX also tacked on $15 to close at $1207. The only economic news today was the unemployment claims numbers; initial unemployment claims declined to 448k from 459k and continuing claims declined from 4.66 million to 4.65 million - slow, steady improvement.

Today's huge move upward didn't help my May iron condor on RUT; the position P/L stands at -$1560 with delta = -$99 and theta = +$156. Adjustments will be required soon if this move continues. The delta of the $770 calls moved up to 14 today. It is worth noting that the broad large cap market, as represented by the S&P 500, traded down from its session highs after about 2:30 pm ET, but the small cap stocks represented by the Russell 2000 Index traded higher into the close. So this bullish run by RUT appears to be continuing. Thus, the recent defensive retreat of condor traders may not be over yet. But we trade what happens, not what we predict.