I admit to being surprised at the market's huge spurt upward yesterday, apparently on the back of Draghi's press conference in Europe. First of all, no one really thinks the European debt issues have been solved. Moreover, the German courts have not yet ruled on the constitutionality of the bailout funds. So declaring victory appears naive at best. Today this was followed with a weak jobs report with only 96k new jobs; analysts were expecting around 130k - 140k. But the market seemed to ignore the bad news. SPX gained $6 to close at $1438 while RUT closed at $842, up $4. Trading volume dropped a bit from yesterday with 2.7 billion shares of the S&P 500 stocks trading (still well above the 50 dma at 2.4B). Trading on the NYSE dropped 6% and trading volume decreased 9% on NASDAQ. Perhaps the poor jobs report has fueled hopes for Bernanke to come to the rescue next week.

I hedged my Sept condor yesterday morning and then repositioned both spreads in the afternoon. I hedged with the Oct 840 calls and then closed the 650/660 put spreads and rolled them to 790/800 and closed the 850/860 call spreads and rolled them up to 860/870. That position stands at a P/L of -$3,320 with delta = -$65 and theta = +$215. I hedged the Oct condor on RUT today with the Nov 880 call; that position stands at a P/L of -$350, with delta = -$48 and theta = +$70.

Shake off the last two days of tension and enjoy the weekend with your family. There will be plenty of time next week to fret about our trading.