Stocks Sharply Lower into Final Hour on Profit-taking and Emerging Market Worries

BOTTOM LINE: The Portfolio is slightly lower into the final hour on losses in my Semi longs and Computer longs. I have not traded today, thus leaving the Portfolio 75% net long. The tone of the market is very negative as the advance/decline line is substantially lower, every sector is lower and volume is heavy. "High-school dropout" copper is getting pounded 3.4% today and is down almost 17% in less than a month, even as U.S. economic data have improved meaningfully over the last few weeks. I continue to believe prices anywhere around current levels are absurd and any substantial rallies in the metal can be sold. Slowing demand growth from emerging markets, rising production, a firmer U.S. dollar and more investment fund downside speculation will provide the catalysts for further declines in the commodity. I still believe it can approach $2 a pound by year-end. I expect US stocks to trade modestly higher into the close from current levels on buyout speculation, short-covering and more economic optimism.