Stocks Slightly Lower into Final Hour on Profit-Taking and Higher Long-Term Rates

BOTTOM LINE: The Portfolio is higher into the final hour on gains in my Internet longs, Semi longs and Retail longs. I have not traded today, thus leaving the Portfolio 100% net long. The tone of the market is slightly negative as the advance/decline line is about even, most sectors are falling and volume is below average. The Wall Street Journal is confirming that Google (GOOG) is in talks to acquire YouTube for $1.6 billion. However, the talks are still at a sensitive stage. I think this would make an excellent acquisition for Google. This price tag seems high, but over the long term it would be well worth it, in my opinion. Google remains my largest long position. I expect US stocks to trade modestly higher into the close from current levels on short-covering, less pessimism, performance anxiety and bargain-hunting.