Stocks Lower on Emerging Market Worries, Credit Fears

BOTTOM LINE: The Portfolio is slightly lower into the final hour as losses in my Computer longs, Medical longs and Internet longs are more than offsetting my gains in my emerging market and commodity shorts. I took profits in a few of my (IWM)/(QQQQ) hedges, added to my (GOOG) long and took some profits in my (EEM) short today, thus leaving the Portfolio 75% net long. The overall tone of the market is negative today as the advance/decline line is lower, most sectors are declining and volume is very heavy. My intraday gauge of investor angst is very elevated. The CBOE total put/call hit the fourth highest level on record today and the VIX is at levels last seen in 2002. I am watching the financials closely. Their relative strength today bodes well for the possibility of a more positive finish to the day. I expect US stocks to trade modestly higher into the close from current levels on short-covering and bargain hunting.