Dow Jones Industrial Averge Breaks 12,000 Intraday as Oil Falls to Recent Lows Offsetting Profit-taking

BOTTOM LINE: The Portfolio is lower into the final hour on losses in my Semi longs, Telecom longs and Medical longs. I have not traded today, thus leaving the Portfolio 100% net long. The tone of the market is neutral as the advance/decline line is about even, sector performance is mixed and volume is heavy. The Associated Press is reporting that North Korea has informed China that it may conduct "as many as three additional tests." This is likely the main reason for the mixed performance in the major averages today. I sense the action over the last two days has prompted the shorts to reload, which bodes well for another round of short-covering. I expect US stocks to trade modestly higher into the close from current levels on short-covering, bargain-hunting, lower energy prices and investment manager performance anxiety.