Stocks Slightly Lower into Final Hour on Rising Apprehension Ahead of Tomorrow's Jobs Report

BOTTOM LINE: The Portfolio is about even into the final hour as gains in my Telecom longs and Medical longs offset losses in my Computer shorts and Retail shorts. 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 modestly lower, sector performance is mixed and volume is slightly above average. Despite mild losses in the major averages, the underlying action remains constructive. Very few stocks are down on volume. Breadth is just modestly negative. A number of market-leading stocks continue to trade well and about a dozen sectors I follow are actually higher. The dollar is moving a bit higher vs. the euro and the 10-year yield is a bit lower over the last few hours. The NYSE Arms is an above-average 1.22. Moreover, the VIX is rising 6.7%. I expect US stocks to trade modestly higher into the close from current levels on short-covering, positive economic data and portfolio manager performance anxiety ahead of tomorrow’s jobs report.