Stocks Modestly Higher into Final Hour on Another Fall in Energy Prices

BOTTOM LINE: The Portfolio is higher into the final hour on gains in my Retail longs, Biotech longs and Commodity shorts. I covered my (QQQQ)/(IWM) hedges and added (BRCM) long today, thus leaving the Portfolio 100% net long. The tone of the market is slightly positive as the advance/decline line is modestly higher, most sectors are rising and volume is light. The airline index has declined 16% over the last two months on high oil prices, terrorism worries and economic growth concerns. As these worries subside over the coming months, I suspect these shares will see a nice bounce from current levels. AMR Corp. (AMR) is my favorite. I am not currently long the stock. I expect US stocks to trade mixed-to-higher into the close from current levels on bargain hunting, short covering and declining energy prices.