Stocks Modestly Higher into Final Hour, Led by Homebuilders

BOTTOM LINE: The Portfolio is slightly higher into the final hour on gains in my Retail longs, Internet longs and Semi longs. I have not traded today, thus leaving the Portfolio 75% net long. The tone of the market is slightly positive as the advance/decline line is modestly higher, sector performance is mostly positive and volume is light. The latest data from the NYSE show short interest as a percentage of total share outstanding is 2.4%. This is back to an all-time record high and corresponds with other data showing excessive levels of pessimism. I expect US stocks to trade mixed-to-higher into the close from current levels on short-covering and bargain hunting ahead of a number of important releases.