Stocks Mixed into Final Hour as Positive Earnings Offset Higher Energy Prices

BOTTOM LINE: The Portfolio is higher into the final hour on gains in my Internet longs and Computer longs. I have not traded today, thus leaving the Portfolio 100% net long. The tone of the market is slightly positive as the advance/decline line is slightly higher, sector performance is mixed and volume is above average. Apple Computer (AAPL) is trading near session highs, rising 6.2%. I continue to believe that forward Mac market-share estimates are way too low. This will substantially boost earnings above current estimates next year. Moreover, new products should also have more of a positive impact than most analysts expect. Apple Computer remains my second-largest long position after adding at much lower levels. The NYSE Arms is currently at 1.16, an above-average level. The three-day moving average of the NYSE Arms is 1.41, the highest level since the July stock market bottom. This is stunning considering the DJIA is at 12,000. Moreover, the 50-day moving average of the ISE Sentiment Index is still near all-time low levels. As CNBC parades the usual bears today, I see little capitulation and much complacency in the bear camp regarding recent gains. I expect US stocks to trade mixed-to-higher into the close from current levels on short-covering, bargain-hunting and investment manager performance anxiety.