Market looks good right now! Everything's rallying nicely and we see lots of buying on dips. I have two major problems though at the moment that are constraining me in cash. First, the upcoming election should unnerve markets at least once over the next nine trading sessions. Second, I just don't know what sectors I want to deploy my money in.
The second problem is the larger one. I'm already making strong gains in retail, home building and technology sectors. I don't want to increase positions here. I would like to add a defense and oil services play (Halliburton) or a Pharma play, but these stocks will be first on the chopping block with a Democratic house.
So the best I could come up with today was back into Wells Fargo. I like WFC here because the bond market thinks the Fed will start cutting in Q2 2007 rather than Q3 like before. Low short term rates are good for the banks and WFC is the best of breed here.
I may try to pick up a little more tech tomorrow. I'm looking at MicroStrategy and NVIDIA.
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