Have stocks hit their lows for the year?

The markets are off to a great start this shortened trading week. Earnings reporting season has arrived with the bulk of the S&P 500 companies due to report their 2nd quarter results over the next 2-3 weeks or so. Will this be the catalyst that sends the markets higher in the second half? Or could it be the upcoming fall vote of midterm elections? Or the combination of the two. Historically as the midterm elections near, stocks tend to perform much better. Since 1950 and in a midterm election year the markets have gone lower in only one year during that span and that was in 2002. Lets hope that history is on our side and we can see some type of market gains in the second half or at the very bare minimum market stability. As far as the small cap and micro cap space is concerned, seemingly the overall markets must strengthen for the junior exhanges to also experience an upward trajectory. For the first time in many months the bulletin board gross dollar volume decreased in the month of June compared to June of 09. That said the overall markets have been in a significant downward trend over the past two months or so and this is why some type of catalyst is needed for a meaningful turnaround. Hopefully at least one of the aforementioned scenarios provide such a catalyst.

Stay tuned and good luck to all.