Stocks Higher into Final Hour on More Positive Economic Data

BOTTOM LINE: The Portfolio is slightly higher into the final hour on gains in my Internet longs, Telecom longs, I-banking longs and Medical longs. I covered a bit of my (EEM) short and all of my (IWM) and (QQQQ) hedges today, thus leaving the Portfolio 100% net long. The tone of the market is positive as the advance/decline line is higher, sector performance is mostly positive and volume is above average. I keep hearing pundits and analysts talk in disbelief about the decline in oil prices. Many speculate that global growth must be plunging. Just take a look at commodity charts, gauges of sentiment and inflows into commodity-related funds over the last couple of years. There has been a mania for commodities. Commodities have provided air for the current “negativity bubble.” That is why it is so easy for most to believe that housing was in a bubble, but then act shocked when commodities plunge. Housing didn't drop because of slowing U.S. growth, it dropped because rampant speculation droves prices too high. The same is happening with commodities. I anticipate the same outcome for global growth. The end of the commodity mania will mean more average global growth rather than the booming levels of the last few years as heavily commodity-dependent emerging market economies slow. The hugely positive effects of the ending of the mania will help boost most developed economies back to average growth from recent below-average rates. I expect US stocks to trade modestly higher into the close from current levels on short-covering, more economic optimism and bargain-hunting.