Stocks Close Near Session Highs Despite Perceived Headwinds

Indices
S&P 500 1,539.18 +.18%
DJIA 13,676.32 +.06%
NASDAQ 2,618.29 +.17%
Russell 2000 855.10 +.20%
Wilshire 5000 15,528.98 +.22%
Russell 1000 Growth 608.66 +.28%
Russell 1000 Value 885.03 +.10%
Morgan Stanley Consumer 751.04 -.24%
Morgan Stanley Cyclical 1,090.93 +.01%
Morgan Stanley Technology 618.96 +.29%
Transports 5,290.52 -.67%
Utilities 518.25 -.20%
MSCI Emerging Markets 129.25 +.42%

Sentiment/Internals
Total Put/Call .89 unch.
NYSE Arms .95 +19.51%
Volatility(VIX) 13.29 +4.0%
ISE Sentiment 168.0 +41.18%

Futures Spot Prices
Crude Oil 66.04 +1.46%
Reformulated Gasoline 222.80 -.74%
Natural Gas 8.18 +3.83%
Heating Oil 196.20 +2.04%
Gold 676.50 -.06%
Base Metals 267.82 -.08%
Copper 347.0 +1.91%

Economy
10-year US Treasury Yield 4.93% -2 basis points
US Dollar 82.04 -.34%
CRB Index 315.55 +.46%

Leading Sectors
Oil Service +2.63%
Internet +1.94%
Computer Hardware +1.38%

Lagging Sectors
Steel -.83%
Biotech -1.24%
Airlines -2.75%

Evening Review
Market Performance Summary
Market Gauges
ETF Performance
Style Performance
Market Wrap CNBC Video(bottom right)
S&P 500 Gallery View
Economic Calendar
Timely Economic Charts
GuruFocus.com
PM Market Call
After-hours Movers
After-hours Stock Quote
In Play

Afternoon Recommendations
Goldman Sachs:
- Rated (M) Buy.

Afternoon/Evening Headlines
Bloomberg:
- Ritchie Capital Management Ltd. is preparing to seek bankruptcy protection for life-insurance holdings in its flagship hedge fund, a month after blaming its co-investor for more than $700 million in losses.
- Openwave Systems(OPWV) rejected a $335 million offer from Harbinger Capital Partners to buy control of the mobile-phone software maker.
- The average US pump price for regular gasoline fell 5.2 cents to $3.16/gallon in the week ended yesterday.
- The perceived risk of owning US corporate bonds held at a 10-week low, according to credit-default swap traders who bet on corporate creditworthiness.
- Gasoline futures fell on forecasts for a fifth weekly rise in US inventories.
- Global spending by oil and natural-gas producers will probably rise 13% this year, according to a Lehman Brothers survey.

Nikkei English News:
- Japan’s government will set targets for industries to improve energy efficiency as it tries to take the lead in cutting greenhouse-gas emissions.

BOTTOM LINE: The Portfolio finished higher today on gains in my Internet longs, Medical longs and Computer longs. I did not trade in the final hour, thus leaving the Portfolio 100% net long. The tone of the market was neutral today as the advance/decline line finished mildly higher, sector performance was mixed and volume was above average. Measures of investor anxiety were above average into the close. Today's overall market action was bullish as the major averages finished near session highs, notwithstanding the plunge in Chinese shares, profit-taking and higher energy prices. The rise in oil today was mostly a function of worries over the category 5 cyclone heading into the Strait of Hormuz. Gasoline futures actually fell 0.47%, and the crack spread closed floor trading below its 50-day moving average for the first time in several months. The 10-year yield is near session lows, despite the rise in oil, falling over 2 basis points. If Chinese shares come under significant pressure again tonight, we will likely see more morning weakness in US shares tomorrow. I continue to observe unbelievable complacency in the bearish camp given what has transpired over the last year and the positive macro backdrop for US stocks.