September 2009 Results:

September ended with another gain even as volatility levels continued to decline. All options were closed out for .05. I wanted to place more trades, but the fear of a suddenly reversing market kept me from doing so. I still believe the market is approaching a critical level where a pullback of 10% or so will occur, especially as the NDX is approaching a multi year congestion area around the 1750 level. The VXN is still bouncing around its mean levels since July, either to go higher or drop back down into pre Lehman channel of 22 to 35. However, any pullback will come with elevated VXN levels as traders look to lock in their profits from the last 6 months. As we approach last Septembers market levels, we should consider if things are really any better than they were before the financial collapse last year.