Stocks Modestly Higher into Final Hour on Buyout Speculation

BOTTOM LINE: The Portfolio is about even into the final hour as gains in my Medical longs and Telecom longs are offsetting my Commodity shorts. I have not traded today, thus leaving the Portfolio 75% net long. The tone of the market is modestly positive as the advance/decline line is slightly higher, most sectors are rising and volume is above-average. Despite KB Home's (KBH) weak report, the Housing Index is rising 1.6% and KB Home is up 2.7%. As well, the May housing futures have ticked up again and are projecting a 1.8% decline in the average home price, up from projections of a 5.2% decline a few months ago. Illumina (ILMN) is 5.3% higher on a report that researchers using their BeadChips discovered four key gene variations that raise the risk of developing type-2 diabetes, the most common form of the disease. I remain long the stock. I expect US stocks to trade mixed-to-lower into the close from current levels on rising energy prices and more profit-taking.