As far as the reflation trades go, I have a base metals mining position and a materials position. But really I am not positioned for a coming reflation trade until it is signaled to be here. That is because many of these items are bouncing within downtrends.
A chart of the Timber & Forestry iShares was shared with me on Twitter and while I want to go whole hog inflation/reflation trade, the existing downtrends keep me in patience mode.
WOOD has broken one trend line and not the other.
When this and other charts start taking out (and holding) 200 day moving averages I’ll get excited. Until then, I cannot because I am a Man Who Stares at Charts (MWSAC) and as such, I am staring at an existing downtrend. Now, MWSACs change their the views all the time. This post gives the parameters to a viewpoint change here.
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