Stocks Higher into Final Hour on Another Decline in Oil and More US Economic Optimism

BOTTOM LINE: The Portfolio is higher into the final hour on gains in my Semi longs, Retail longs, I-banking longs and Telecom longs. I covered my (IWM) and (QQQQ) hedges, added to my (EEM) short and added to my (ISRG) and (UA) longs today, thus leaving the Portfolio 100% net long. The tone of the market is modestly positive as the advance/decline line is modestly higher, almost every sector is rising and volume is above average. Overall, I would classify the Fed’s Kohn’s comments today as mildly dovish. Recent economic data has been modestly below "Goldilocks," with below-average growth and inflation. I suspect the U.S. economy will accelerate modestly throughout the year back to around average rates of growth. However, inflation should continue to decelerate meaningfully and remain below average levels through year-end. Oil is now -$.22, to $56.09, falling -$1.49 from session highs, notwithstanding calls from some OPEC members for an emergency meeting and production disruption worries. So far, the major averages are just trending mildly higher on the decline. I suspect over the next couple of weeks, investors will once again view oil's demise as hugely positive for the broad U.S. stock market. I expect US stocks to trade modestly higher into the close from current levels on short-covering, more economic optimism, lower energy prices and bargain-hunting.