Bookkeeping: Initiating Goldman Sachs (GS)

In light of my last post in regards to sector rotation I am beginning a stake in Goldman Sachs (GS). I've been waiting for a breakout over $185, which was the March high. We have some serious resistance at the 200 day moving average, $197, but if that breaks - the sky is the relative limit.

I am doing this to create a more balanced approach in the fund, sort of a mini barbell effect. I now have 2 homebuilders and 2 investment banks (Morgan Stanley being the other) - while in total they make up 10% or so of the fund, I need to have "something" working when the market turns to it's early cycle play. The last few times money "flowed" from commodities to other areas (however short of time frame) the fund really suffered; so this should help to mitigate some of this suffering if we are about to embark on another rotation.

Another option would be Ultra Financial (UYG) which is double the return of the financial index. I prefer to go with the company with their hands in every piece of our government and economic system ;)

I'm starting Goldman Sachs with a 2.4% stake buying in the $186s...

I've added even more Morgan Stanley (MS) as well, to my earlier purchases today (this one is up nearly 6% today). When/if these 2 companies break above their next level of resistance (200 day moving averages) I'll pile more into these positions... with unfettered access to the Fed's balance sheet, with much lighter regulation than traditional banks - these guys should now be able to run wild with your taxpayer dollars ;)

Merrill Lynch (MER), and Lehman Brothers (LEH) probably have more upside, but I consider more speculative at this time.

Long Goldman Sachs, Morgan Stanley in fund; long Morgan Stanley in personal account