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. .

Bret Kenwell currently writes, blogs and also contributes to Rocco Pendola's Weekly Options Newsletter. Focuses on short- to intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.

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