DJIA Approaching 12,000 Heading into Final Hour on Positive Economic Data

BOTTOM LINE: The Portfolio is higher into the final hour on gains in my Semi longs, Biotech longs and Retail longs. I have not traded today, thus leaving the Portfolio 100% net long. The tone of the market is positive as the advance/decline line is higher, sector performance is positive and volume is about average. This morning Forbes.com reported that OPEC lowered its 2006 global demand growth forecast by 100,000 barrels per day. As well, it cut demand estimates for its oil next year from 28.7 million bpd this year to 28.1 million bpd next. The cartel said 2007 appears "far from robust" and that it is worried about government policies around the world promoting conservation and substitution, as well as the elimination of energy price subsidies in some Asian countries. Moreover, OPEC said it sees non-OPEC production to grow a stronger-than-expected 1.1 million bpd this year and 1.3 million bpd next year. This would be the strongest non-OPEC supply growth since 1984 as demand wanes. OPEC reiterated its belief that there is "a clear imbalance between supply and demand." Finally, it said that by the second quarter of next year excess oil supply could overwhelm storage capacity in OECD countries, which is approaching the all-time high set in 1998.These comments by OPEC, which had been using every opportunity to talk up oil prices and boost speculation over the last few years, are very bearish for oil. I expect US stocks to trade mixed-to-higher into the close from current levels on short-covering, earnings optimism, stable long-term rates and investment manager performance anxiety.