Stocks Sharply Higher into Final Hour on Heavy Volume

BOTTOM LINE: The Portfolio is higher into the final hour on gains in my Internet longs, Retail longs, Medical longs and Telecom longs. I covered some of my (IWM) and (QQQQ) hedges today, thus leaving the Portfolio 75% net long. The tone of the market is very positive as the advance/decline line is substantially higher, every sector is higher and volume is heavy. The EIA just revised second- and third-quarter world oil demand growth lower by 400,000 barrels per day, according to Reuters. As well, total output by OPEC in February rose to 29.945 million barrels per day vs. January's 29.880 million barrels per day. I expect global oil demand growth to be revised even lower later this year. Oil is only $0.38 higher today despite the rebound in global equity stock markets. Take a look at this chart of odd lot short sales, a contrary indicator, which have soared the last four days. This indicator is just another example of the many showings of extreme anxiety by the herd. I continue to believe that the market has cleansed itself of weak hands at a very rapid rate and that the current pullback will be milder and less damaging than the vast majority expect. I expect US stocks to trade modestly higher into the close from current levels on short-covering and bargain-hunting.