DJIA Blasting Through 14,000 to New Record High, Led by Technology, Homebuilders, Financials

BOTTOM LINE: The Portfolio is higher into the final hour on gains in my Networking longs, Retail longs, Biotech longs, Computer longs and Internet longs. I have not traded today, thus leaving the Portfolio 100% net long. The overall tone of the market is very positive today as the advance/decline line is substantially higher, almost every sector is rising and volume is slightly above average. The 10-year yield is falling 4 basis points, and the 10-year TIPS spread is down to 2.29%, as investors continue to ratchet down their inflation expectations. The U.S. Dollar Index is rising 0.23%, which appears to be pressuring oil, which is falling $1.42/bbl. The dollar is surging against the yen, which is also a positive. Fed fund futures now imply a 78% chance of a 25-basis-point cut at this month's fed meeting. I think oil has seen its high for the year and has finally started a meaningful decline that will eventually be seen as a huge positive for the broad market. Last year, oil fell $28 per barrel in less than six months, which was one of the main catalysts behind a 16.5% jump in the S&P 500 over that timeframe, in my opinion. The fundamentals for oil are even worse this year as articulated very well by ISI Group's Mike Rothman a couple of weeks ago in Barron's. Moreover, with the consumer under more pressure this year, as a result of housing, it could be argued that a substantial decline in energy prices would even be more positive for the economy and stocks this year. Global chip sales rose 4.5% in August, led by a 48% surge in NAND flash sales, according to the Semiconductor Industry Association (SIA). The SIA said PC sales have been above their forecast this year. They also said cell phone sales have been above their forecast of 10% and now expect sales to come in at 15% for the year. The Philadelphia Stock Exchange Semiconductor Sector Index (SOX) is one of today's best performers, rising 2.9% on the news. I expect US stocks to trade mixed-to-higher into the close from current levels on short-covering, less economic pessimism, lower energy prices, lower long-term rates and investment manager performance anxiety.