Traders Starting Fresh For July
NEW YORK ( TheStreet) -- With U.S. markets moving higher on the first day of the third quarter, it looks like traders are back to buying the dips. TheStreet's Debra Borchardt is with Doreen Mogavero, CEO of Mogavero Lee to discuss the price action.
With today's economic release of the ISM manufacturing data, U.S. indices continue to move higher. Although the data were roughly in line with the consensus, the report has aided in a week where traders are looking for clarity.
With markets closed completely on Thursday and at 1:00 p.m. EDT on Wednesday due to the Fourth of July holiday, volumes will likely be below average.
This could have two effects: Price swings will be more violent due to less volume, or more calm with less "big money" to move the markets.Mogavero added that traders are back to bidding up prices on the dips and that's part of what we're seeing today. Friday's all-important nonfarm payrolls report could also have a more muted reaction from equities, with many investors likely departing for the week in favor of vacations. Gold is also seeing a solid bounce after breaking below the key $1,200 level late last week. Mogavero added that the bounce was "very technical" and that it is much more appropriately priced for a hedge against inflation. -- Written by Bret Kenwell in Petoskey, Mich. . Follow @BretKenwell
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