Stocks Slightly Lower into Final Hour on Rise in Oil and Economic Worries

BOTTOM LINE: The Portfolio is slightly lower into the final hour on losses in my Retail longs, Internet longs and Energy-related shorts. I have not traded today, thus leaving the Portfolio 75% net long. The tone of the market is mixed as the advance/decline line is about even, sector performance is mixed and volume is above average. The yield on the 10-year Treasury note is at session lows, falling 11 basis points to 4.98%. I expect lower long-term rates will eventually result in P/E multiple expansion for the broad market, especially those companies that can generate above-average growth in a slower economy. I expect US stocks to trade modestly higher into the close from current levels on short-covering and lower long-term rates.