Stocks Lower into Final Hour on Yahoo! Forecast and Thailand Worries

BOTTOM LINE: The Portfolio is lower into the final hour on losses in my Internet and Semi longs. I added to my Google(GOOG) long and took profits in another long today, thus leaving the Portfolio 100% net long. The tone of the market is negative today as the advance/decline line is lower, most sectors are lower and volume is above average. The Johnson Redbook same-store sales index rose 3.9% year over year last week vs. a 3.8% rise the prior week. The long-term average is a gain of around 2.8%. This is just more evidence that the anticipated collapse in consumer spending won't materialize anytime soon, even as investors continue to price this into stocks. A healthy labor market, falling energy prices, lower long-term interest rates, decelerating inflation, a rising stock market and less irrational pessimism will continue to more than offset housing over the intermediate term. The Morgan Stanley Retail Index (MVRX) has surged 14.1% in less than two months. I expect continued outperformance by the sector during the fourth quarter. I expect US stocks to trade modestly higher into the close from current levels on short-covering, lower energy prices, declining interest rates and bargain hunting.