Stocks Sharply Higher into Final Hour, Led by Tech, on Rotation Out of Commodities

BOTTOM LINE: The Portfolio is higher into the final hour on gains in my Semi longs, Medical longs, Retail longs and Computer longs. I exited my (IWM) and (QQQQ) hedges today, thus leaving the Portfolio 100% net long. The tone of the market is positive as the advance/decline line is higher, almost every sector is rising and volume is about average. The latest report from the NYSE shows that short interest on the exchange as a percentage of total shares outstanding (NYSIPRTS Index on Bloomberg) rose to 2.6% in mid September from 2.5% the prior month. This is another all-time record. This is up from an all-time low of 1.0% during September 1999. This bodes well for my prediction of significantly higher US stock prices through year-end. I expect US stocks to trade mixed-to-higher into the close from current levels on short-covering, declining interest rates and bargain hunting.