DJIA 10,724.63 +.04%
NASDAQ 2,225.58 +.23%
Russell 2000 671.21 +.61%
DJ Wilshire 5000 12,434.39 +.15%
S&P Barra Growth 596.63 +.19%
S&P Barra Value 643.37 +.05%
Morgan Stanley Consumer 592.28 -.11%
Morgan Stanley Cyclical 761.60 +.50%
Morgan Stanley Technology 526.22 +.18%
Transports 4,133.85 +1.26%
Utilities 395.32 -.56%
Put/Call .62 -12.68%
NYSE Arms .84 +25.04%
Volatility(VIX) 11.48 +2.04%
ISE Sentiment 173.00 -4.95%
US Dollar 91.93 +.08%
CRB 311.96 -.38%
Futures Spot Prices
Crude Oil 55.50 -1.49%
Unleaded Gasoline 145.20 -.51%
Natural Gas 11.43 -4.29%
Heating Oil 169.00 -.14%
Gold 486.00 -.18%
Base Metals 141.21 +1.58%
Copper 191.30 +1.81%
10-year US Treasury Yield 4.47% +.52%
Leading Sectors
Semis +2.19%
Broadcasting +1.18%
Telecom +.89%
Lagging Sectors
Coal -.87%
Gold & Silver -1.13%
Airlines -1.60%
BOTTOM LINE: The Portfolio is slightly higher mid-day on gains in my Semi longs, Computer longs, Steel shorts and Energy-related shorts. I have not traded this morning, thus leaving the Portfolio 100% net long. The tone of the market is positive as the advance/decline line is higher, most sectors are rising and volume is heavy. Measures of investor anxiety are mostly higher. Overall, today’s market action is neutral considering the fall in energy prices and merger activity. Beazer Homes (BZH) is making an all-time high today. This is significant. Beazer has more ARMs exposure than any other major homebuilder, as well as significant exposure to many of the perceived "overheated" markets. This stock has been targeted by the shorts as the most exposed to the coming housing collapse they have been forecasting for a several years. 27.3% of the float is short. I continue to believe housing is slowing to more sustainable healthy levels, not collapsing. A slowing housing market is a big positive for U.S. stocks, in my opinion. I expect US stocks to trade modestly higher from current levels into the close on short-covering and falling energy prices.
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