Stocks at Session Highs into Final Hour on Positive Beige Book Comments and Short-Covering

BOTTOM LINE: The Portfolio is slightly higher into the final hour on gains in my Biotech longs and Telecom 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, most sectors are rising and volume is about average. The Fed just released its Beige Book. It said consumer spending is increasing and that there is continued moderate growth in the economy. Most areas were cautiously optimistic on holiday sales. Housing and autos were weak areas of the report, however, manufacturing was positive and services were solid. It said that labor markets are tight, but wage growth is only moderate. Finally, most areas reported easing energy and construction costs. Overall, this report should be perceived as bullish for equities as it paints a picture of modest growth and inflation. I expect US stocks to trade mixed-to-higher into the close from current levels on short-covering and bargain-hunting.