Roger Nusbaum submits: The market got a nice pop Thursday -- this is a day where a lot of people are unclenching a bit.
I am uneasy, though, that this rally will keep going. I have said that if I am wrong and we have a big whoosh up that I would expect to lag given the cash raised over the last six weeks but for now most of the foreign I hold is up more that the domestic so I am reasonably keeping pace. As of twenty minutes ago, I was, generically speaking and clients accounts could be better or worse, ahead by about 18 beeps. Hopefully this foreign stock outperformance can continue as they were hit harder on the way down.
Regardless of what stocks do I think the dollar will get back on its down trend in short order which will continue to help foreign stocks.
I am not in a hurry to seriously redeploy the cash raised. I may add a food stock with a high dividend but that is the only type of stock for now. This move up seems like a textbook fakeout that will start eroding in a day or two. If I am wrong I'll ride it up with too much cash. As I think risk is higher than normal right now I am fully prepared to lag but hoping I don't.