Stocks Soaring to Records into Final Hour on Positive Economic Data and Constructive Fed Comments

BOTTOM LINE: The Portfolio is higher into the final hour on gains in my Retail longs, Internet longs, Biotech longs and Medical longs. I covered my (IWM) and (QQQQ) hedges into this morning’s weakness, thus leaving the Portfolio 100% net long. The tone of the market is positive as the advance/decline line is higher, almost every sector is rising and volume is above average. Overall, the Fed’s statements were more dovish than the market expected. The major averages are rallying sharply with bonds. Google (GOOG) is trading 2.0% higher today, near session highs. Maybe Google will really report a disappointing quarter, but I suspect that the company will post excellent results. I also expect the many bears to attack the company vigorously as Google was recently ranked the No. 1 most recognized brand in the world. It is a high-profile U.S. growth company, much like Apple (AAPL), that has the potential to help turn the bearish public bullish on U.S. stocks. I have said numerous times, it is very important for the bears to keep the general public excessively pessimistic on U.S. stocks. It is all that stands between them and the "mother of all short-covering rallies," in my opinion. I remain long Google and Apple. I expect US stocks to trade mixed-to-higher into the close from current levels on more economic optimism, bargain-hunting, short-covering and lower long-term rates.