*Warning* Varchild Extremely BEARISH
Going against the grain of this ridiculous rally.. But so what.
I see too many warning signs:
1) Pres. Obama doesn't care about the effects of his own policies and doesn't even understand basic economic principles. He has no clue about the damage excessive spending can cause. His universal healthcare is nothing more than a way to endanger health care as we know it... His Cap and Trade program will result in Heating Oil Shortages...Long lines at Gas Stations....
Where's the cries to get the ball moving on Off shore drilling? No where to be found!
Inventories of oil may be up... but for how long? There isn't an indefinite supply of oil in the world ya know...so off-shore drilling is just as important as it ever was. Gasoline struck $2.10 here in Michigan and despite the price of Oil falling today due to inventories, I do not see the price of GAS doing anything but going higher.
2) As soon as the spending faucet is even PERCEIVED to come to an end....Any positive effects from the stimulus package will only result in businesses panic driven to cut costs, lay off more workers, and take on riskier loans.
3) Wall Street is getting absolutely Hammered behind everyone's backs. Share prices going up do not reflect REALITY (what-so-ever).
No one is talking about the growing number of companys heading into Loss Making territory...
No one is talking about the increasing signs of entire Countries (Venezuala) heading into Bankruptcy.
4) If the EUROPEAN UNION is in absolute panic mode over Obama's Spending Spree..... Why aren't Wall streeters?
5) The positive economic recovery signs will continue for awhile.... They were entirely based on falling prices... and ONLY based on falling prices.... So, what happens when companys are forced to raise prices to stay afloat? What happens when more and more companys are unable to keep prices low?
What happens when INPUT costs...such as the rising costs of GASOLINE (happening already) start to force companys to raise prices?
We have an absolute crisis brewing.
VARCHILD is now growing CASH on the sidelines and has finger on the SELL button for all positions in portfolio except ENERGY and BANKS.