DJIA Making Another New All-Time High into Final Hour on More Economic Optimism

BOTTOM LINE: The Portfolio is higher into the final hour on gains in my Internet longs, Semi longs, Retail longs and Telecom longs. I covered my (QQQQ), (IWM), (EEM) hedges this morning, took profits in a few longs and added to my (BRCM), (ISRG) longs today, thus leaving the Portfolio 100% net long. The tone of the market is very positive as the advance/decline line is substantially higher, almost every sector is rising and volume is above average. Global Internet information provider comScore just issued a press release, stating that Apple Computer's (AAPL) iTunes revenue soared 84% during the first three quarters of 2006 vs. the same period last year. Moreover, it reported that the number of iTunes buying transactions have surged 67% on a 10% increase in the dollars spent per transaction.I continue to believe that too much emphasis is being placed on the iPod and not enough on Macs or new products, however, this completely refutes the recent Forrester report. Apple remains my second-largest long position behind Google (GOOG), and I expect substantial gains in the stock next year from current levels. I expect US stocks to trade mixed-to-higher into the close from current levels on short-covering, more economic optimism, buyout speculation and portfolio manager performance anxiety.