DJIA Hitting Another Record on More Economic Optimism, Short-Covering

BOTTOM LINE: The Portfolio is slightly higher into the final hour on gains in my Medical longs and Retail longs. I have not traded today, thus leaving the Portfolio 100% net long. The tone of the market is positive as the advance/decline line is higher, most sectors are gaining and volume is above average. Shanghai fell another 2.7% last night, but other emerging markets were mostly higher. Small caps are outperforming again today, and the Russell 2000 is now 9% higher year-to-date vs. a 9.1% gain for the S&P 500. The underlying tone of the market remains very healthy. The NYSE cumulative advance/decline line is making another new high today. My intraday gauge of investor angst is only around average levels, notwithstanding today’s advance. Google (GOOG) just announced that it has purchased Feedburner. This will allow Google to embed its ads in RSS feeds, which is a big positive. This acquisition has been speculated about for some time. This blog does a good job of summarizing its importance. This is a big deal, in my opinion, and another big win for Google. I expect US stocks to trade mixed-to-higher into the close from current levels on buyout speculation, more economic optimism, short-covering and investment manager performance anxiety.