Stocks Close Lower on Healthy Profit-taking and Europe Worries

Indices
S&P 500 1,517.38 -.89%
DJIA 13,465.37 -.95%
NASDAQ 2,587.18 -.92%
Russell 2000 841.21 -.83%
Wilshire 5000 15,300.98 -.92%
Russell 1000 Growth 599.77 -.98%
Russell 1000 Value 871.69 -.91%
Morgan Stanley Consumer 740.08 -.87%
Morgan Stanley Cyclical 1,075.08 -1.12%
Morgan Stanley Technology 614.06 -.94%
Transports 5,158.98 -1.76%
Utilities 503.91 -1.30%
MSCI Emerging Markets 127.12 -1.32%

Sentiment/Internals
Total Put/Call 1.12 +19.15%
NYSE Arms 1.44 +28.71%
Volatility(VIX) 14.87 +9.10%
ISE Sentiment 111.0 -29.30%

Futures Spot Prices
Crude Oil 65.98 +.56%
Reformulated Gasoline 218.93 -.82%
Natural Gas 8.11 +.56%
Heating Oil 197.38 +.48%
Gold 675.60 +.07%
Base Metals 264.74 -1.61%
Copper 340.25 -1.13%

Economy
10-year US Treasury Yield 4.96% -3 basis points
US Dollar 81.89 unch.
CRB Index 313.66 -.31%

Leading Sectors
I-Banks +.21%
Medical Equipment -.36%
Computer Hardware -.37%

Lagging Sectors
Homebuilders -2.37%
Coal -3.06%
Oil Tankers -3.38%

Evening Review
Market Performance Summary
Market Gauges
ETF Performance
Style Performance
Market Wrap CNBC Video(bottom right)
S&P 500 Gallery View
Economic Calendar
Timely Economic Charts
GuruFocus.com
PM Market Call
After-hours Movers
After-hours Stock Quote
In Play

Afternoon Recommendations
Deutsche Bank:
- Upgraded (TMB) to Buy.

Afternoon/Evening Headlines
Bloomberg:
- Federal Reserve Bank of Kansas City President Thomas Hoenig said that he’s “confident” the US economy will pick up from last quarter’s slowdown and that he’s “hopeful” inflation will slow.
- ADC Telecom(ADCT), a maker of phone-networking gear, said second-quarter profit quadruples. The shares rose .40 to $17.70 in after-hours trading.

NY Times:
- China said it would start nationwide inspections of food and drug exports, responding to global concerns sparked by poisoned toothpaste and pet food.

BOTTOM LINE: The Portfolio finished lower today on losses in my Biotech longs and Retail longs. I did not trade in the final hour, thus leaving the Portfolio 100% net long. The tone of the market was negative today as the advance/decline line finished lower, almost every sector declined and volume was above average. Measures of investor anxiety were elevated into the close. Today's overall market action was bearish. However, I continue to view weakness over the last couple of days as a much needed healthy pullback, not the start of a correction. Many market-leading stocks held firm throughout the day and the Broker/Dealer Index actually rose. The many US stock market “fearleaders” were out in full force today, however as I said in my previous post, I suspect this healthy pullback is close to running its course.