Tuesday, March 07, 2006

Stocks Lower into Final Hour, Pressured by Energy and Tech Shares

BOTTOM LINE: The Portfolio is slightly lower into the final hour as losses in my technology longs are more than offsetting gains in my energy-related shorts. I added to my (IWM) and (QQQQ) shorts, thus leaving the Portfolio 25% net long. The tone of the market is negative as the advance/decline line is substantially lower, sector performance is mostly negative and volume is about average. It is short-term bearish that stocks have continued to weaken even as oil trades near session lows and the 10-year Treasury note yield has reversed 7 basis points lower. I expect US stocks to trade mixed-to-lower into the close from current levels on continuing weakness in energy and tech shares.

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