Pop & Drop

We've seen a number of big moves on the first trading day of the month this year and today continued that trend.

Unlike a lot of economic data that came out last week, both of today's reports on construction spending and the ISM were disappointing. While I'm sure we could probably place the blame for today's ugly reversal upon them, I don't buy it. I personally think the market's inability to climb against the S&P 1300 level after this morning's gapper caught traders a wee bit off guard (myself included) and it is never pretty when that happens.

Even though the bulls keep knocking on that door of resistance, we've yet to see that big bold breakout that will set up for a full counter-trend bounce back to 1325 area. The hope is that the combination of this week's economic data (which we will have plenty of over the next three days) and the return of more trading volume will help. But, as the saying goes, there's no place for hope in a viable trading strategy. How very true that is and, if today is of any clear indication, it is time to buckle up for a wild September ride!

* Tomorrow will be the 5th Anniversary of The Kirk Report!