Saturday, September 5, 2009

The Kirk Report

The Kirk Report

Happy Labor Day!

Posted: 04 Sep 2009 04:04 PM PDT

The first week trading week of September is over and now we can all sit back and enjoy Labor Day!

S&P 500: 5 Day View

For the week overall, the S&P 500 fell -1.22%, Dow -1.08%, Nasdaq +0.49%, and the Russell 2000 -1.61%. To make the big money this week you had to be long gold (GDX) and silver (DBS). It also would have been helpful to be leveraged short crude oil (SCO), real estate (SRS) and financials (FAZ). Today's gain notwithstanding, it was also not a great week for the popular natural gas ETF (UNG).

After Tuesday's decline I wrote "the bulls have earned our respect, so let's give them some rope tomorrow and see if they come back with a vengeance and defend their positions as they have so many times before." Well, they did a fairly good job of circling the wagons by week's end as every major market index reclaimed its 20 day moving averages and the Nasdaq reclaimed its 10 day. While today's holiday/rumor driven market on low volume is a tough to trust, at the end of the day and week you have to respect the market's ability to keep bouncing back. At some point that will surely end, but it wasn't this week even with the fears of what September may bring our way.

Speaking of which the market will be closed on Monday in observance of the Labor Day Holiday and we have another four-day trading week ahead which is always challenging. So, get some rest this weekend and I'll see you back here on Tuesday. Have a wonderful holiday!