Sell Into Strength as we Run Up To the Top of the Trading Range

In my last post I noted that a rally had started and would probably run into Resistance around Dow 7800 - 8000. The Dow has now rallied to above 7500 and it is time to scale out of positions as we reach 7800 - 8000. The market has had a nice bounce and is approaching the top of a trading range. It's time to be thankful and take the money and run.

The key to this market is for the government to stay focused and fix the banking system. All of the mob psyhcology surrounding AIG and Bernard Madoff are distractions. People are entitled to vent, but they are venting at equivalent of a garden hose compared to Niagra Falls. Everyone is pointing fingers at everyone else. The press and the Congress blame Timothy Geitner even though the AIG information was available to all of Congress had they just taken the time to read their own pork laden plan. Nero fiddles while Rome burns.

In short,The Obama administration has got to focus and take the bull by the horns. They have tried to do too many things at once, such as fix our health care, education and energy policies. All of those things are good, but not until the banking mess is fixed.