Stocks Mixed into Final Hour as Tech Strength Offsets Financial Weakness

BOTTOM LINE: The Portfolio is higher into the final hour on gains in my Internet longs, Medical longs and Biotech longs. I have not traded today, thus leaving the Portfolio 75% net long. The overall tone of the market is mixed today as the advance/decline line is slightly lower, sector performance is mixed and volume is above-average. Traders are once again ignoring positive economic data as investors seem to always take the stance that the worst is yet to come in the current U.S. negativity bubble. Goldman Sachs (GS) told CNBC that rumors of an impending writedown aren't true. As well, Merrill Lynch (MER) said that it doesn't believe inappropriate deals occurred. So far, action today is sloppy and likely frustrating for both bulls and bears. Strength in tech, energy and biotech is being offset by weakness in anything associated with housing. Investor anxiety is still high. It is a positive that the broad market is holding as well as it is given the groups that remain under pressure. Housing-related plays are getting very oversold again and remain heavily-shorted, which means the slightest of catalysts could spur a near-term rally in the beaten-up shares. Beneath the surface, the tone is more positive in the broad market. I expect US stocks to trade mixed-to-higher into the close from current levels on bargain-hunting and short-covering.