DJIA Surges to Another All-time High as Interest Rates Fall Further and Optimism Increases

BOTTOM LINE: The Portfolio is higher into the final hour on gains in my Internet longs, Retail longs, Biotech longs and Medical longs. I have not traded today, thus leaving the Portfolio 100% net long. The tone of the market is very positive as the advance/decline line is substantially higher, most sectors are rising and volume is above average. The action in P.F. Chang's (PFCB) stock today bodes well for further gains in consumer cyclicals. Chang's had rallied 14% from July lows before today. The company pre-announced a slightly below expectations third quarter, yet the stock is surging another 8.3% today on huge volume. The collapse in energy prices and lower long-term rates are trumping near-term concerns. I also suspect that when oil does finally temporarily stabilize it will help the major averages, not hurt them, as commodity stocks have been a major drag. Prices are down so much that even a bounce higher shouldn't hurt the broad market. I expect US stocks to trade mixed-to-higher into the close from current levels on short-covering, lower long-term rates and bargain-hunting.