Stocks Rebounding into Final Hour on Short-Covering, Lower Energy Prices, Less Economic Pessimism

BOTTOM LINE: The Portfolio is slightly higher into the final hour on gains in my Retail longs, Computer longs, Internet longs, Biotech longs and Medical longs. I covered all of my (IWM/QQQQ) hedges and some of my (EEM) short today, thus leaving the Portfolio 100% net long. The tone of the market is mildly positive as the advance/decline line is slightly higher, sector performance is mixed and volume is above average. Investor anxiety is above average. Today’s overall market action is bullish. Nikkei futures indicate an +65 open in Japan and DAX futures indicate an +37 open in Germany tomorrow. I expect US stocks to trade mixed-to-higher into the close from current levels on short-covering, lower energy prices and less economic sector pessimism.