Stocks at Session Highs on Falling Long-Term Rates and Short-Covering

BOTTOM LINE: The Portfolio is higher into the final hour on gains in my Telecom longs and Semi 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 above average. Bloomberg is reporting that Apple Computer (AAPL) just filed for patent protection for a cell phone that also works as a media player. Theflyonthewall.com is saying that Attorney Michael Starkweather said, "I believe that, with this patent in hand, Apple will eventually be after every phone company, film maker, computer maker and video producer to pay royalties of every download of not just music but also movies and videos." He also said, "This is one of the most important patents in years." Apple rallied to session highs on the report. I continue to believe analysts are vastly underestimating the earnings potential of this company. It remains my second-largest long position behind Google (GOOG). 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.