Stocks Mostly Lower into Final Hour on Interest Rate Concerns

BOTTOM LINE: The Portfolio is slightly lower into the final hour on losses in my Computer longs, Internet longs and Energy-related shorts. I took profits in some of my (EEM), (QQQQ) and (IWM) shorts this morning and then added back to them, thus leaving the Portfolio 50% net long. The tone of the market is negative as the advance/decline line is lower, sector performance is mixed and volume is heavy. We got a supposedly bad inflation number this morning. Fed members are making hawkish comments. The U.S. dollar is lower. Long-term rates are higher. Oil is rising. This should be helping gold at least bounce, considering it has fallen 25% in a month. Instead, gold is trading down another $9 per ounce to session lows. Its weakness is telling. I expect US stocks to trade mixed-to-lower into the close from current levels on worries over higher long-term rates and oil prices.