Stocks Sharply Lower Into Final Hour on Higher Energy Prices and Long-term Rates

BOTTOM LINE: The Portfolio is lower heading into the final hour on losses in my Semi longs, Networking longs and Medical longs. I have not traded today, thus leaving the Portfolio 100% net long. The tone of the market is negative as the advance/decline line is substantially lower, almost every sector is lower and volume is light. Emerging market stocks are once again underperforming. The iShares MSCI Emerging Markets Index (EEM) is 3.6% lower. I expect EEM to take out its 200-day moving-average over the coming weeks. I am still short EEM. I expect US stocks to trade modestly higher into the close from current levels on short-covering and bargain hunting.