Update on IGV, recommending QQQQ

This past Monday (8/14/2006), I recommended buying iShares Goldman Sachs Software Index (AMEX: IGV). At that time, it closed at 38.19. On Friday, IGV closed at 40.55, a gain of 6% from the time of my recommendation. At a time when people are falling all over themselves to lock in a 5% interest rate on a 12-month CD, I consider a 6% gain in less than a week pretty impressive. On Thursday, this article was posted on Marketwatch.com where Citigroup analyst Brent Thill sees "a sector rotation into software" stocks. I wonder if he was reading my blog. Unfortunately, I know that my blog doesn't yet have a broad readership, and most people missed out on this gain.

Coming off of this early success, my next stock recommendation is for Nasdaq-100 Tracking Stock (Nasdaq: QQQQ). Like IGV, this is also an ETF. While IGV is concentrated in the software sector, QQQQ is more broadly positioned with 100 of the largest Nasdaq companies. It is now trading at 38.79. I again see some potential upside in these Nasdaq stocks as they have been beaten down lately.