Stocks Lower into Final Hour on Profit-taking and Economic Slowdown Worries

BOTTOM LINE: The Portfolio is slightly lower into the final hour on losses in my Semi longs and Commodity shorts. I added (IWM) and (QQQQ) hedges today, thus leaving the Portfolio 75% net long. The tone of the market is negative today as the advance/decline line is lower, most sectors are falling and volume is above-average. I expect we will see a pick-up in economic activity, after recent slowing, during the fourth quarter as the positive effects from the plunge in energy prices and lower long-term rates take hold. I expect US stocks to trade modestly higher into the close from current levels on short-covering, declining interest rates and bargain hunting.