Stocks Mixed Heading into Final Hour as Lower Long-term Rates Offset Economic Worries

BOTTOM LINE: The Portfolio is slightly higher into the final hour on gains in my Medical longs and Commodity shorts. I covered some of my (IWM) and (QQQQ) hedges today, thus leaving the Portfolio 75% net long. The tone of the market is slightly positive as the advance/decline line is mixed, most sectors are rising and volume is light. The major averages have stabilized, with a number of market-leading stocks now higher on the day. Apple Computer's (AAPL) recent announcement of a laptop recall only produced a mild sell-off in the shares which have since rebounded, as so much bad news is already priced into this stock and the broad market at current levels. I remain long (AAPL). I suspect Bernanke’s speech tomorrow will be viewed positively by investors. I expect US stocks to trade modestly higher into the close from current levels on short-covering, bargain hunting and lower long-term rates.