Stocks Higher into Final Hour on Another Fall in Energy Prices and Less Pessimism

BOTTOM LINE: The Portfolio is higher into the final hour on gains in my Computer longs, Medical longs, Internet longs and Retail longs. I have not traded today, thus leaving the Portfolio 100% net long. The tone of the market is positive as the advance/decline line is higher, most sectors are rising and volume is about average. The ISE Sentiment Index plunged 42.0% this morning to a very depressed level of 40.0 This is the second lowest reading on record since the index began almost two years ago. Moreover, the 20-day moving average is at 106.8, a record low. This reading bodes well for a continuation of the recent stock rally. Apple Computer (AAPL) trades especially well and appears to be breaking free from the options worries that have engulfed the shares for months. I still expect Apple to test its all-time high of $86.40 during the fourth quarter. I remain long AAPL. I expect US stocks to trade mixed-to-higher into the close from current levels on short-covering, more optimism, bargain hunting and declining energy prices.