Stocks Reversing Lower into Final Hour on Profit-Taking, More Shorting

BOTTOM LINE: The Portfolio is higher into the final hour on gains in my Technology longs, Medical longs and Biotech longs. I added (IWM)/(QQQQ) hedges and added to my (EEM) short today, thus leaving the Portfolio 75% net long. The tone of the market is mildly positive as the advance/decline line is higher, sector performance is mostly positive and volume is above average. Investor angst is high. Today's overall market action is slightly bullish. The VIX is falling -1.66% and is around average at 18.94. The ISE Sentiment Index is below average at 113.0 and the total put/call is slightly below average at .77. Finally, the NYSE Arms has been running above average most of the day, hitting 1.42 at it intraday peak, and is currently 1.27. The Euro Financial Sector Credit Default Swap Index is falling -5.92% to 83.26 basis points. The North American Investment Grade CDS Index is falling -2.10% to 87.80 basis points. The TED Spread is unch. at 14.0 basis points. The 2-Year Swap Spread is falling -3.84% to 23.50 basis points. The Libor-OIS Spread is unch. at 10.0 basis points. The 10-Year TIPS Spread is up +1 basis point to 2.17%. The 3-Month T-Bill is yielding .12%, which is unch. today. Nikkei futures indicate an +29 open in Japan and DAX futures indicate a down -24 open in Germany tomorrow. I expect US stocks to trade mixed-to-lower into the close from current levels on profit-taking, more shorting and technical selling.