Major Averages Lower into Final Hour, Pressured by Energy and Technology Shares

BOTTOM LINE: The Portfolio is lower into the final hour on losses in my Internet longs, Semi longs and Medical longs. I added to my GOOG long and to my IWM and QQQQ shorts, thus leaving the Portfolio 75% net long. The tone of the market is modestly negative as the advance/decline line is lower, most sectors are falling and volume is heavy. Measures of investor anxiety are higher. Today's "global selloff" is only resulting in a 0.6% decline in the S&P 500 (SPX). The SPX is still 2.2% higher for the year, while the Nasdaq is 3.2% higher. This is better than most other major global indices. One of last year's best performers, the Nikkei, is now down 4.8% for the year. It is too early to tell, but it appears to me that a global rotation back into U.S. stocks is in its early stages. I expect US stocks to trade modestly higher from current levels into the close on short-covering, positive economic data and lower energy prices.