Yesterday’s gains were met with another sell off today. We are in the teeth of it right now.It’s the middle of a very tough summer, and if you haven’t sold whatever you wanted to sell, you’re probably close to selling somewhere near a bottom if you want to sell now.

Despite a big drop in the DOW down 236 with the NASDAQ down 60, there were some positives to take away from today’s market.

I really liked the action in oil today. Iran was testing nuclear missiles overnight, and in past years that would have made oil run up like crazy. Instead, the price of oil dropped $.40 per barrel, which makes me think oil’s meteoric rise might be coming to a close. A significant drop in oil would be huge for the markets.

New lows have slowed considerably. There were only about 100 new lows printed in each of the major indexes today, suggesting a bottoming process is underway.

The only bright spot in microcap land was Nighthawk (OTC BB: NIHK) which staged a kind of low volume mini rally. The company announced the largest remote disconnect order in its history- 1,000 units in one order. An east coast utility has been adding the devices where appropriate for their customers, and they could order thousands more. Hopefully, this will lead to more large orders.

Everything else we follow was down today on the usual summer’s light volume. We are right in the teeth of a pretty nasty low volume summer sell down, and the media is not giving anyone any reason to buy.

We are closing in on some pretty attractive bottoms in some of these small stocks, and investors with a six month time window could be getting in position to make some big returns.

Comments and questions are welcome.