Obama announced his Treasury Secretary on Friday and the market soared. This removed a certain level of uncertainty in the market and I believe the market is looking forward to seeing anyone besides Paulson at the helm. Unfortunately, Geithner has been involved in many of the horrible decisions that have taken place not only in the last 18 months, but during the last 8 years. Like Bernanke, Geithner has no qualms about throwing good money at a dying patient.
The coming week is notoriously strong so don’t be surprised to see the rally continue a bit. I am definitively less bullish after the big move during the last 2 days. In all likelihood we have seen the majority of this rally. It’s time to pare back and reduce your risk.