Stocks Modestly Lower into Final Hour on Profit-taking

BOTTOM LINE: The Portfolio is higher into the final hour on gains in my Biotech longs, Internet longs and Networking longs. I have not traded today, thus leaving the Portfolio 100% net long. The tone of the market is slightly negative as the advance/decline line is modestly lower, sector performance is mixed and volume is above average. The ECRI Weekly Leading Index fell to 136.90 this week from 138.20 the prior week. This is off of cycle highs of 138.50 set the third week of January, but is still solidly higher from a reading of 132.00 during the last week of May 2005. This gauge of future economic activity is forecasting healthy, but decelerating, U.S. growth. I expect US stocks to trade modestly higher into the close from current levels on short-covering and lower long-term rates.