Don't be lulled into thinking that the slide is over and that the markets have hit a bottom. In my opinion they have not. Major market participation in the CMO , MBS and IPO markets that drove previous market strength and breadth are still closed, and there is still the question of the viability of the US auto industry. The new home markets showed a little sign of activity last quarter, but that has been resales of foreclosed and auctioned homes. We could still be in the eye of the storm. Again a wait and see approach is recommended with conservative purchasing or reallocating in select industries. Careful attention should be paid to a company's balance sheet specifically the accounts receivables and cash flow statements. On that note, Sector/Industry funds allows you to target specific industries or diversify your risk in specific industries that you may be over weighed in, such as the automotive industry. If that is your case, you may want to look at Sector/Industry Spiders
Exchange-Traded Fund Blog