Stocks Modestly Higher into Final Hour Even as Oil and Long-term Rates Rise

BOTTOM LINE: The Portfolio is about even into the final hour as gains in my Semi longs and Retail longs are offsetting losses in my Energy-related shorts. I added to my (IWM) and (QQQQ) shorts today, thus leaving the Portfolio 50% net long. The tone of the market is neutral as the advance/decline line is modestly lower, sector performance is mostly positive and volume is about average. The energy sector saw the greatest increase in net insider selling in the S&P 500 last week. Insiders sold $364,392,555 worth of stock, while only buying $4,734,854. The industrial sector saw the second-greatest amount of net insider selling. Insiders sold $265,133,591 worth of stock, while purchasing $5,045,250. This corresponds with my view that the most economically sensitive stocks, which have recently seen huge price spikes, will underperform as economic growth slows over the coming months. I expect US stocks to trade mixed into the close from current levels as strong economic data offset the rise in energy prices and long-term rates.