Stocks Sharply Lower into Final Hour on Rising Geopolitical Tensions

BOTTOM LINE: The Portfolio is lower into the final hour on losses in my Semi longs, Internet longs and Retail longs. I added to my (EEM), (IWM) and (QQQQ) 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, every sector is falling and volume is heavy. I suspect we are setting up for a very sharp snapback rally in stocks next week as sentiment is deteriorating rapidly. Dovish comments from Bernanke, better earnings reports from key companies and a calming in Middle Eastern tensions should provide the catalysts. I expect US stocks to trade modestly higher into the close from current levels on short-covering and bargain-hunting.