Stocks Sharply Higher into Final Hour as Long-term Rates Fall

BOTTOM LINE: The Portfolio is higher into the final hour on gains in my Retail and Biotech longs. I covered the remainder of my (IWM) and (QQQQ) shorts today, thus leaving the Portfolio 100% net long. The tone of the market is positive as the advance/decline line is higher, sector performance is positive and volume is above average. The AAII percentage of Bulls rose to 45.89% this week from 42.11% the prior week. This reading is still around average levels. The AAII percentage of Bears fell to 33.56% this week from 35.96% the prior week. This reading is still at above-average levels. Considering the major averages are still near six-year highs, these numbers are very subdued. I expect bullish sentiment to rise again next week. I expect US stocks to trade mixed into the close from current levels as falling long-term rates offset profit-taking.