As long as S&P 887 holds, I'm willing to do the reflation trade for an oversold bounce... I added to James River Coal (JRCC), some Natural Gas ETF (at 52 week low!) (UNG), and some energy ETFs of varying types with about 10-15% of the cash horde. First time I've ever owned the natural gas etf.


United States Natural Gas Fund

I am picking up some Yingli Green Energy (YGE) to add to the position - not really reflation but close enough. Yingli actually had some good news today on the financial front but is being slammed due to a LDK Solar (LDK) forecast.

  • Solar-cell maker Yingli Green Energy Holding Co. Ltd. on Monday said it made adjustments to its capital structure by securing two credit facilities, paying off debt ahead of schedule and issuing a second tranche of senior notes.

Like I said, there is no sense or discerning in Chinese solar stocks - these are 2 very different companies in the supply chain but American investors simply throw them all in 1 pile. And they all trade with oil ;)

If S&P 500 breaks the 200 day simple moving average. I'll be out of all this with losses, but for now I am expecting dead cat bounces and simply going on what my eyes see on charts - very overdue (short term) upside in names. This will set many up for great intermediate term shorts. This is only a trade, not an investment right here. Outside of things we need (college tuition, healthcare bills, food, energy) we have a lot more deflation than inflation so 'reflation' is more a dream of HAL9000 and friends for now. But a tradeable dream as April-May showed.

Long all names mentioned excluding LDK Solar in fund and personal account.