Stocks Modestly Higher into Final Hour on Economic Optimism

BOTTOM LINE: The Portfolio is slightly higher into the final hour on gains in my Internet longs, Retail longs and Networking longs. I have not traded today, thus leaving the Portfolio 100% net long. The tone of the market is modestly positive as the advance/decline line is slightly higher, sector performance is mixed and volume is above average. NYSE short interest as a % of total shares is currently 2.2%, down slightly from all-time record levels of 2.4% reached three months ago. The current reading is also up from 1.0% in late 1999, the lowest since record-keeping began in 1995. I expect US stocks to trade mixed into the close from current levels as short-covering offsets higher long-term rates.