Do not underestimate the power of a new administration in Washington. With the ability to spend a huge amount of dollars, team Obama can wield tremendous influence in the market.

Case in point is the stem cell space. It is widely expected that Obama will issue an executive order eliminating restrictions on stem cell research.

Stocks like StemCells Inc. (NASDAQ: STEM) and Geron Corp. (NASDAQ: GERN) have been moving higher since the inaugural.

Coincidentally, on Friday, GERN announced approval for human trials for its treatment of spinal chord injuries using stem cells. Both GERN and STEM were up big as a result.

Another space expected to do well under the Obama administration is construction. A massive stimulus plan is said to be coming in February. A key point of the plan will be to boost infrastructure spending.

The dollars will benefit companies like Fluor Corp. (NYSE: FLR) and Jacobs Engineering (NYSE: JEC). Unlike stem cells, the market has yet to move these stocks higher. FLR is down more than 10% and JEC is down nearly 18% so far this year.

During the past few months my colleagues and I have been pondering what, if any, stocks might do well during an Obama administration. I posted Obama Pick: StemCells Inc. about 10 weeks ago, and so far the stock is up today (with almost everything else down) StemCell (NASDAQ: STEM) and continues to look promising.

The closing price of this small cap stock on the day of the report was $1.58. It is a volatile stock for sure because I bought in at $1.20 and now it is trading up about 27% (as I type) from yesterday's close of $2.15 to $2.73.

Obviously ten weeks although a short time in general, may be a long time in a stormy market, but I will ride this one out even though I could reap 128% gain at this moment. Forgive me, all you day traders, who think I think I should sell and book over a 500% IRR. (Might be worth it just for bragging rights later in the year as I have seen others do)

I have no information that would lead me to understand why the stock is up so much. The clinical trials I reported before have not added anything new I can glean today. There was a report last week by a small research house I never heard of calling for the stock to reach $3.00 (Dawson James Securities Initiates Research Coverage of StemCells, Inc. With Buy Recommendation) but I think that is all wild speculation. It could be that in a day, and it could also collapse.

Ignoring today's bounce I still think STEM is one to watch if you can get in at a lower price. If it gets away -- let it, and pursue something else. There is nothing you have to do -- except taking care of your family and friends in these trying times. I will update after the market close.

Update: Stem closed the day at $2.53, up $0.38 of 17.67% as of 4:00 EST.

Sheldon Liber is the CEO of a small private investment company and the principal for design and research at an architecture & planning firm. He writes the columns Chasing Value and Serious Money. Disclosure: I own shares of STEM.

To say that the past week has been an eventful one would be a great understatement. On November 4th, the American people elected a new president, Barack Obama. Leading up to this historic event, markets rallied, but then lost some 10% in the following two days as the economic drama was relentless. On Friday, despite Ford and GM posting massive losses, and despite the jobs report showing numbers not seen in 14 years, markets are rallying (by noon).

To stay ahead of the market is impossible these days, and all one can do is hope we're nearing a bottom and current picks could only benefit. Following the different events this week and the still ongoing earnings season, here are some stock picks and pans from BloggingStocks contributors:

Obama Picks:

General Electric Co. (NYSE: GE) was Amey Stone's Obama pick due to near-term catalysts as well as long term solid fundamentals -- not to mention the 6% yield.

Ford Motor Co. (NYSE: F) was Michael Rainey's Obama pick. Since Ford is the strongest of the Big Three, Obama will likely choose to save it ... and perhaps GM. Ford had just reported earnings Friday, posting a loss.

It was only two weeks ago I posted about one of the stocks I own and follow closely Chasing Value: Intuitive Surgical Earnings -- what now?, a company that I consider an "Obama pick". My frequent readers know that the company is one of my older investments and one that has paid off handsomely. Although Intuitive Surgical Inc. (NASDAQ: ISRG) may still be a profitable investment at it's current level, at this point, it is well covered.

Searching for something less known, and certainly more controversial, I have the ideal Obama stock pick to add to your watchlist, StemCell Inc. (NASDA: STEM) which closed yesterday at $1.90. per share. It is not profitable, spends heavily on Research and Development and is highly speculative. So was ISRG when I got in very early.

The company profile states that STEM "discovers cell-based therapies to treat diseases of the central nervous system (CNS), such as cerebral palsy and Alzheimer's disease, as well as spinal cord injury. It is researching stem cell and progenitor cell (cells that have developed from stem cells) therapies to repair neural tissue damaged by disease and injury, and has discovered markers for CNS stem cells and a way to reproduce them for transplant."