This market is going to grind into a pattern or level to slightly down, in my opinion. There aren't any upside catalysts. Growth won't resume until mid to late 2009 according to the Fed. I'm don't take everything they say as truth, but definitely listen to them more than media/blogger types.
Cash isn't a bad place to be, and to some extent, neither is short. Any rallies appear to be short lived, no matter which sector produces them. I still see earnings quality deteriorating in financial stocks, while energy stocks have earnings that will be steady. And in a market like this, steady earnings are pretty dang good. The problem with holding these stocks is you'll have to endure corrections/false moves/strange one-day reversals. If you can handle it, you should be fine.
I'm hearing Democrats jumping on-board with Natural Gas more and more. And this is a positive as it gives us more idea on how the election outcome will determine energy policy. Even if Nancy Pelosi doesn't really know what Natural Gas is, she is one of the main promoters of party policy.
Quite frankly, energy policy is my biggest concern going forward. It means so much economically, politically, and for the environment. It is the "ultimate issue" in my mind, and thats why I focus a lot of my time determining future policy and investments to profit from it.
There you have it. Have a great day!