Stocks Lower into Final Hour on Lingering Housing Concerns, Higher Oil Prices

BOTTOM LINE: The Portfolio is higher into the final hour on gains in my Computer longs, Medical longs and Semiconductor longs. I have not traded today, thus leaving the Portfolio 100% net long. The tone of the market is modestly negative as the advance/decline line is lower, sector performance is mostly negative and volume is above average. Last week, a director of Bear Stearns (BSC) purchased 50,000 shares in three separate transactions at an average price of $148.32 per share. This brings his total holdings to 175,000 shares, a 40% increase. This is especially interesting considering investors' concerns over the company's subprime exposure. Last week, the NYSE cumulative advance/decline line made a new all-time high. As I said recently, this has been one of the better markets I can remember for stockpickers. Many individual stocks are posting huge gains for the year already. As well, the broad stock market is outperforming the major averages this year as the Value Line Geometric Index is 3.7% higher. Stocks have pared this morning's losses substantially as many market leaders are gaining upside traction. Tech shares are leading the major averages higher. I expect US stocks to trade mixed-to-higher into the close on short-covering and bargain-hunting.