S&P 500 1,155.56 -.56%
DJIA 10,193.77 -.82%
NASDAQ 1,927.62 -.98%
Russell 2000 586.81 -.87%
DJ Wilshire 5000 11,356.56 -.64%
S&P Barra Growth 559.60 -.46%
S&P Barra Value 590.66 -.81%
Morgan Stanley Consumer 583.55 -.16%
Morgan Stanley Cyclical 699.02 -1.51%
Morgan Stanley Technology 429.20 -2.26%
Transports 3,413-.82%
Utilities 359.52 -1.06%
Put/Call 1.43 +31.19%
NYSE Arms 1.24 +3.38%
Volatility(VIX) 15.33 +5.51%
ISE Sentiment 140.00 -7.89%
US Dollar 84.57 -.51%
CRB 298.58 -.27%
Futures Spot Prices
Crude Oil 50.25 -1.82%
Unleaded Gasoline 147.50 -1.93%
Natural Gas 6.96 -1.54%
Heating Oil 145.50 -1.84%
Gold 426.50 +.21%
Base Metals 124.55 +.81%
Copper 144.50 +1.16%
10-year US Treasury Yield 4.30% -.18%
Leading Sectors
Drugs +1.60%
HMOs +1.11%
Biotech +.36%
Lagging Sectors
Networking -3.50%
Disk Drives -3.95%
Computer Hardware -4.20%
BOTTOM LINE: US stocks are lower mid-day on continuing worries over slowing growth. The Portfolio is substantially higher on gains in my Oil Tanker, Medical Information Systems, Software and Chinese ADR shorts. I took profits in a few of my Chinese ADR shorts this morning, thus leaving the Portfolio 25% net long. The tone of the market is negative as the advance/decline line is very weak, almost every sector is lower and volume is heavy. Measures of investor anxiety are mostly higher. Today’s overall market action is negative, considering the continuing decline in commodity prices, the market’s oversold state and GE’s positive report. Investors continue to price in the possibility of an imminent recession, which I believe is an overly pessimistic view. GDP growth will likely temporarily slow to around 2%, before accelerating later in the year to around 3%. Modest growth, lower inflation and low interest rates will provide a very positive back-drop for the stock market in the second half of the year. I continue to believe investors should use further weakness to begin buying shares of favorite longs over the coming weeks. I expect US stocks to trade mixed-to-higher into the close on short-covering and bargain-hunting.
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