Mid-Term Elections

The markets probably need a catalyst to project themselves higher into year-end.  I think the midterm elections have the potential to be the event that leads to a rally.  This is more likely if the Republicans somehow gain control of the Senate.  I don't really think it will matter much on major policy changes.  The Republicans, if they win, will not have the 60 votes necessary to override a presidential veto.  Psychology though is different and just the thought that we might have a more pro business agenda out of Washington could be enough to ignite the animal spirits going into 2015.  

We'll have to see the results of the elections.   I think there's a higher probability of a rally regardless of who wins the Senate but the path is clearer for that to happen with a GOP victory.  I'm also assuming in this scenario that there's no other major event washing up on the shores.

Link:  Businessinsider.com: Most Important Charts in the World.

*Long ETFs related to the S&P 500 in client and personal accounts although these positions can change at any time.