One area I've identified as yet another "Obama hope" sector is medical IT - the two stocks I've been looking at are Cerner (CERN) and Quality Systems (QSII).

Two other names of interest are athenahealth (ATHN) and AllScripts Healthcare (MDRX).

This is really just like the solar and infrastructure areas - buy because Obama promises to shovel money down the throat of a sector or "likes" the sector. Even if very little money will show up anytime soon - that doesn't matter to HAL9000 and crowd. They buy thesis, not reality. An analyst tried to warn about this in infrastructure a few weeks ago (Dec 19: Citi Analyst Frowns on Obamamania; ABB Gives Reality Check) - the stocks fell for a day or two before hope returned.

So we have a quandry very similar to solar or infrastructure - buy on reality? or buy on Obama hope and hedge fund thesis? I've been targeting Quality Systems which is up about 80% since early December on 'thesis', and waiting for it to pullback to a major support area - it is doing a textbook move today to the 50 day moving average (upper $38s).

Tough call this one... I am going to watch it closely here and I'd like to see a bounce before getting in, even if I have to pay up a bit... it is now in the low $39s; it could bounce here or fall further to the 200 day moving average near $36, or simply fall more on "reality". But IF this follows the infrastructure call from mid December, after today's reality check the lemmings will run right back into the name ... on hope.