Stocks Surging into Final Hour on Lower Energy Prices, Rising US Dollar, Less Economic Pessimism

BOTTOM LINE: The Portfolio is higher into the final hour on gains in my Biotech longs, Computer longs, Gaming longs and Commodity shorts. I covered all of my (IWM)/(QQQQ) hedges and some of my (EEM) short this morning, thus leaving the Portfolio 100% net long. The overall tone of the market is bullish as the advance/decline line is higher, most sectors are rising and volume is above average. Investor anxiety is about average. Today’s overall market action is bullish. The VIX is falling 3.5%, but remains above average at 19.6. The ISE Sentiment Index is below average at 127.0 and the total put/call is about average at .89. Finally, the NYSE Arms has been running about average most of the day and is currently .89. The financials(XLF) are rising 4% today and continue to trade as if a significant low is already in place despite more negative headlines. Apple Computer(AAPL), one of my largest longs, is surging 4% today despite giving conservative forward guidance. I continue to believe there is a major sea change underway with respect to rising demand for the Mac and that this trend is still in its very early stages. Moreover, I believe the iPhone will make greater inroads into the enterprise than investors currently perceive. I still see substantial upside to Apple shares from current levels as the p/e multiple expands on better-than-expected earnings and rising demand for true "growth" stocks. Nikkei futures indicate an +240 open in Japan and DAX futures indicate an +84 open in Germany tomorrow. I expect US stocks to trade mixed-to-higher into the close from current levels on short-covering, lower energy prices, US dollar strength and less economic pessimism.