Stocks Sharply Lower into Final Hour on Hawkish Fed Commentary and Housing Worries

BOTTOM LINE: The Portfolio is lower into the final hour on losses in my Medical longs, Semi longs and Retail longs. I added to my (EEM), (QQQQ) and (IWM) shorts today, thus leaving the Portfolio 50% net long. The tone of the market is very negative as the advance/decline line is substantially lower, almost every sector is declining and volume is below average. I suspect falling commodity stocks will lead to another bout of international stock selling tonight, which could lead to further weakness in U.S. stocks tomorrow morning. I expect US stocks to trade mixed into the close from current levels as economic worries offset short-covering.