Stocks Sharply Higher into Final Hour on Bernanke Speech, Lower Rates and Declining Energy Prices

BOTTOM LINE: The Portfolio is higher into the final hour on gains in my Retail longs, Computer longs, Semi longs and Medical longs. I have not traded today, thus leaving the Portfolio 100% net long. The tone of the market is very positive as the advance/decline line is substantially higher, almost every sector is rising and volume is heavy. Considering how many times Bernanke has mentioned oil as the main source of inflationary fears and oil's extremely elevated state, it must be extremely disturbing for the bears to contemplate the distinct possibility of a sharp drop in oil that isn't accompanied by a substantial economic downturn. I continue to believe that the negative effects oil has had on many aspects of the economy are severely underestimated. The beginning of the mother of all short-covering rallies will likely coincide with a substantial downturn in oil prices. I expect US stocks to trade mixed-to-higher into the close from current levels on short-covering, bargain-hunting, lower long-term rates and lower energy prices.