Stocks Higher into Final Hour on Bargain-Hunting and Short-Covering

BOTTOM LINE: The Portfolio is slightly higher into the final hour on gains in my Retail longs, Computer longs and Telecom longs. I have not traded today, thus leaving the Portfolio 50% net long. The tone of the market is modestly positive as the advance/decline line is modestly higher, most sectors are rising and volume is heavy. Much has been made over the Shanghai Composite's almost 10% plunge two days ago. However, India's Sensex Index is the BRIC that began to crack before shanghai. It began rolling over a couple of weeks ago. The Sensex is down 9% over the last five days, finishing last night down 4% at session lows. It is now down 11% in about three weeks and down 6.1% year to date, which is the worst performance of any major country index I follow. I continue to believe the mania for emerging market stocks is in the process of ending and that developed markets will substantially outperform them this year. I expect US stocks to trade mixed-to-higher into the close from current levels on short-covering and bargain-hunting.