Stocks Mixed into Final Hour on Positive Economic Data, Higher Energy Prices

BOTTOM LINE: The Portfolio is slightly higher into the final hour on gains in my Medical longs, Semi longs and Metals shorts. I have not traded today, thus leaving the Portfolio 100% net long. The tone of the market is slightly positive as the advance/decline line is modestly higher, most sectors are gaining and volume is about average. Much was made by the bears over the last couple of months regarding the recent declines in truck tonnage. However, the American Trucking Association Trucking Tonnage Index jumped from 106.8 to 110.9 in December from November. This was the largest increase since January 2005. Chinese stocks fell the most in five years this week as the Shanghai Composite fell 7.2%. It is now 11% off its recent high. Vietnam, on the other hand, soared another 10.2% this week. The Vietnam Index is now 43% higher year-to-date and 243% higher over the last 12 months. I continue to believe this bubble will begin to deflate at any time. The general U.S. public, chasing performance, has the smallest percentage of their portfolios in U.S. stocks in at least 23 years. I still expect the mania for emerging market stocks to begin reversing course this year and result in a significant increase in the demand for U.S. stocks at time of very low supply. I expect US stocks to trade mixed into the close from current levels as economic optimism and short-covering offsets higher energy prices.