Stocks Mixed into Final Hour as Short-Covering Offsets Rising Economic Pessimism

BOTTOM LINE: The Portfolio is slightly higher into the final hour on gains in my Internet longs, Education longs, Biotech longs and Commodity/Emerging Market shorts. I have not traded today, thus leaving the Portfolio 75% net long. The tone of the market is mildly negative as the advance/decline line is lower, sector performance is mixed and volume is below average. Investor anxiety is above average. Today’s overall market action is neutral. Nikkei futures indicate an +46 open in Japan and DAX futures indicate an +2 open in Germany tomorrow. I expect US stocks to trade mixed-to-higher into the close from current levels on short-covering, bargain-hunting and less extreme financial sector pessimism.