Stocks Mixed into Final Hour as Reversal in Energy Prices Offsets Fed Worries

BOTTOM LINE: The Portfolio is slightly lower into the final hour on losses in my Computer longs, Medical longs and Biotech longs. I added to my (IWM)/(QQQQ) shorts this morning and to my (ISRG) long and (COP) short, thus leaving the Portfolio 50% net long. The tone of the market is mildly negative as the advance/decline line is slightly lower, sector performance is mixed and volume is average. Morgan Stanley rated U.S. stocks 'overweight' on its global focus list. It cut Japanese stocks to 'neutral' and cut the weighting of emerging markets in the list. I expect US stocks to trade mixed into the close from current levels as a reversal in energy prices and stable long-term rates offsets worries over Iran and the Fed.