Stocks Slightly Higher into Final Hour on Positive Bernanke Comments

BOTTOM LINE: The Portfolio is higher into the final hour on gains in my Telecom longs, Medical longs, Retail longs and Computer longs. I have not traded today, thus leaving the Portfolio 75% net long. The tone of the market is slightly positive as the advance/decline line is about even, sector performance is mixed and volume is above average. The latest data from the NYSE shows short interest fell only .7% from mid-October through mid-November, after reaching an all-time high the prior month, despite recent gains and bears' suggestions that they are a dying breed. To put that into perspective, NYSE short interest has risen 6.2% from June and 21% from January of this year. Moreover, since the stock market bubble burst in early 2000 and the negativity bubble began to fill with air, NYSE short interest has rocketed 148.2%. I suspect many shorts will be quick to cover on any signs of market stabilization. More record highs for the DJIA are likely before year-end. I expect US stocks to trade modestly higher into the close from current levels on short-covering, lower long-term rates and bargain-hunting.