Stocks Lower into Final Hour on Worries Over Housing, Terrorism and Iran

BOTTOM LINE: The Portfolio is slightly lower into the final hour as losses in my Medical and Retail longs are more than offsetting gains in my Base Metal and Energy-related shorts. I added to my (EEM) short and added (IWM) and (QQQQ) hedges today, thus leaving the Portfolio 50% net long. The tone of the market is negative as the advance/decline line is lower, most sectors are falling and volume is below average. The grind lower by stocks throughout the afternoon with elevated levels of angst is not a good sign. Bonds have now recouped all of their morning losses. It is interesting to note that gold is lower today despite rumors of Iranian nuclear developments, terrorism fears and a slightly weaker dollar. Due to record speculation by investment funds, I think gold, copper and oil are all much more correlated than most perceive. I expect US stocks to trade mixed into the close from current levels as short-covering offsets worries over developments in Iran.