Stocks Lower into Final Hour on Growth Worries and Profit-taking

BOTTOM LINE: The Portfolio is slightly lower into the final hour on losses in my Semi longs and Computer longs. I have not traded today, thus leaving the Portfolio 100% net long. The tone of the market is negative as the advance/decline line is substantially lower, most sectors are falling and volume is light. The Amaranth hedge fund conference call just ended. It said that its multi-strategy funds are down 55% for the year and that it lost $560 million on Sept. 14 on the plunge in natural gas. Amaranth considered the energy market moves in September as highly remote. The hedge fund plans to remain in business but will no longer trade energy. I think many other funds will come to this same conclusion over the coming months, further pressuring most commodity prices. The CRB Index is approaching bear market territory, falling 18% from May highs. I also continue to believe the mania for emerging market stocks is in the initial stages of ending, as well. I expect US stocks to trade modestly higher into the close from current levels on short-covering, declining interest rates and bargain hunting.