Stocks Lower into Final Hour on Lingering Sub-Prime, Iran Concerns

BOTTOM LINE: The Portfolio is slightly lower into the final hour on losses in my Retail longs and Energy-related shorts. I have not traded today, thus leaving the Portfolio 100% net long. The tone of the market is negative as the advance/decline line is modestly lower, most sectors are declining and volume is below average. My intraday gauge of investor angst is now elevated for the fourth consecutive day considering the mixed performance in the major averages. If this week's economic data somehow come in around or above estimates, I wouldn't be surprised to see some upside fireworks in the averages. I think most investors believe economic data will come in below consensus estimates. The 10-year yield is near session lows, falling another 5 basis points. I expect US stocks to trade mixed-to-higher into the close from current levels as lower long-term rates, stable energy prices and buyout speculation offsets lingering sub-prime and Iran concerns.