Stocks Mixed into Final Hour as Technology Share Strength Offsets Emerging Market and Commodity Weakness

BOTTOM LINE: The Portfolio is higher into the final hour on gains in my Computer longs, Semi longs, Medical longs and Commodity shorts. I have not traded today, thus leaving the Portfolio 100% net long. The tone of the market is mixed as the advance/decline line is about even, most sectors are rising and volume is above average. Measures of investor anxiety are mostly higher. I have been studying the specs for Apple's (AAPL) new iPhone. Cingular is offering the Palm Treo and HTC 8525 for $399. The BlackBerry Pearl and Samsung BlackJack are $199. I am very familiar with all these products. I do not think that Apple's initial price of $499 is too high. In my opinion, the iPhone will decimate the high-end consumer phone competition. Apple's stock was already undervalued before today's releases. The 7% gain is an underreaction, in my opinion. I now view Apple's stock as severely undervalued. Apple remains my second largest long position behind Google(GOOG). I expect stocks to trade modestly higher into the close on short-covering, bargain hunting, more economic optimism and lower energy prices.