Stocks Modestly Lower into Final Hour on Growth Worries

BOTTOM LINE: The Portfolio is higher into the final hour on gains in my Computer longs, Semi longs and Commodity shorts. I took profits in some of my (EEM) short and covered my (QQQQ)/(IWM) hedges today, thus leaving the Portfolio 100% net long. The tone of the market is slightly negative as the advance/decline line is modestly lower, sector performance is mixed and volume is above average. Briefing.com is reporting that Wal-Mart's (WMT) CEO is saying that he is "very pleased" with the back-to-school selling season. I continue to believe most retailers will exceed holiday estimates as the effects of mortgage resets are vastly overestimated, pessimism dissipates, the labor market remains healthy, energy prices fall, long-term rates remain low and stocks rise. I expect US stocks to trade modestly higher into the close from current levels on bargain hunting, short covering and declining energy prices.