Wednesday, June 24, 2009

Stocks Higher into Final Hour on Falling Energy Prices, Short-Covering, Less Economic Angst

BOTTOM LINE: The Portfolio is higher into the final hour on gains in my Technology longs, Medical longs and Biotech longs. I covered all my (IWM)/(QQQQ) hedges and some of my (EEM) short this morning, thus leaving the Portfolio 100% net long. The tone of the market is positive as the advance/decline line is higher, most sectors are rising and volume is about average. Investor anxiety is high. Today’s overall market action is mildly bullish. The VIX is falling 3.99% and is high at 29.36. The ISE Sentiment Index is below average at 117.0 and the total put/call is about average at .86. Finally, the NYSE Arms has been running about average most of the day, hitting 1.34 at its intraday peak, and is currently 1.06. Nikkei futures indicate an +100 open in Japan and DAX futures indicate a -44 open in Germany tomorrow. I expect US stocks to trade mixed-to-higher into the close from current levels on more lower energy prices, less economic angst, diminishing financial sector pessimism and investment manager performance anxiety.

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