I entered into NRP some time ago, which was quickly an unmitigated disaster. The position is down 25% from my purchase price. I sold half the position, along with other partial positions, back in January when I raised cash.

Today, I added back some of that for $14.93.

I want to talk at brief about coal. The time to buy into US coal reserves is now, while euphoria over natural gas is highest and markets are most spooked about a Democrat directed EPA.

I am in no way minimalizing the importance of the shale revolution. Not by a longshot – if you look at my own holdings, BAS and HCLP represent a firm belief in the continued importance of those assets to the US energy equation.

What I am doing is highlighting the continued importance coal will have in US power generation and abroad.

Coal presently makes up just over 1/3 of US domestic generation. This is down from 1/2 earlier this decade, most prominently replaced by the surge in application with natural gas. Yet, markets price in equilibrium of choices, when operating correctly.

We have to presume that markets will find a price that fairly limits benefits between choosing natural gas versus coal versus nuclear versus…for equivalent production of energy. This would suggest that natural gas prices are set to rise (further enhancing the payoff for the producers). I would also expect that, as excess capacity gets utilized, the adaptation of coal plants to gas will subside.

This process may take a little longer to finish, and perhaps gas will even match coal in terms of energy mix before it is done. What I would not count on is coal rapidly or even ever completely being removed from global energy production.

Which brings us to the fears of EPA punitive measures against coal. So far, these are aimed at coal fired power plants. While this would, at least temporarily, hinder US energy production from coal here at home, what is to stop US coal producers from simply shipping overseas? And why is metallurgical coal acting so volatile when it is not a component of US power generation?

The signs, to my eyes, spell clear a story of market overreaction to pop culture and fantasy. Power generation shifts or slides, waxes or wanes. It does not turn on or off. Coal has been systematically shunned regardless of its exact nature (energy versus metallurgical) and the driving catalyst seems to be mostly political.

But politics change and politics in this country are about to.

I will give you a 6 month synopsis of what is about to happen. In November, the DNC is going to get creamed, delivering the Senate to the RNC. You can suspend your political predilections, as this is merely obvious to anyone not sucking their own exhaust. And the GOP has no problem with coal power generation. In fact, the Republicans think the argument against coal power generation is, quote, “stupid”.

This will change the short term plot dynamics that drive most superficial market players. Around middle of 2015 or early 2016, coal will be “the most obvious buy ever”, whereas today it is “fools nonsense.” Of course, when it is “the most obvious buy ever”, it will be at some considerable percentage above where you can take a position today.

This will accelerate especially if it should appear going into the next presidential election that a Republican is about to take the White House (that is still too far out for me to see, but it is certainly not out of the question). In such an event, the current shunning of coal will look especially stupid and myopic.

Regardless of the next presidential cycle though, the simple act of the GOP taking both chambers of Congress should noticeably shift the messaging surrounding out of favor coal plays. Executive overreach through agency bodies, no longer shielded by the Senate, will begin getting visibly and openly reprimanded; or even punished.

This shift, along with coals critical importance to the US economy and abroad, should render this a generous buying opportunity in hindsight.

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Sure my account doesn’t really show the anguish I am expecting yet, but that means little. You can be sure, the black hooded man is just around the corner, waiting to carry me off.

What am I talking about?

Check out uranium spot prices. I’m seeing spot now is down to $28 per pound. This floorless plunge cannot be hinting of pleasantries awaiting. We are experiencing bottomless pit action here; the screams of comrades ever echoing their misplaced footing.

There can be only one meaning behind this level of gore; someone(s) have finally been cashed out by the no sales nature of uranium brokerage these days. They are desperate for a bid – any bid – just something to keep the doors open.

This ends in a full scale liquidation or fire sales acquisitions, folks.

And to complete the cycle, Japan announced that their early nuclear restart aspirations have been put on notice by a low circuit court, which ruled against the restarts based on their status as nuclear safety experts…

A preliminary look says the court doesn’t actually have the authority to stop anything. Japan’s energy cabinet has already reaffirmed Japan’s commitment to restart the reactors, more or less brushing aside the court.

But this is bad publicity. Public opinion in Japan remains slated against nuclear power. I’m of the mind they still go through with it (they have to), but it’s going to be a very public, bitter contest.

For the moment, having as much CCJ stock as I do (mentioning CCJ’s own Canadian tax complications), plus UEC on the side, I can only presume the Devil is in wait to collect my soul.

Let’s not oblige him…

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The indices are lower and I don’t care, because for me the bull market is back.

HCLP is up 3.5%. BAS is up 2.3%. UEC is up about 8% after being up 21% yesterday. NRP is up 1%. CCJ is up 1%. Silver is up 1%. Nothing I own is even down today.

The rotation is at hand, into my hand as luck would have it.

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So far I’m seeing gains of just under 1% today, clearly led by HCLP. UEC is staging a recovery (I hope), but CCJ has turned lower.

The multifamily REITs AEC and MAA are digesting some of the latest move higher.

But I’m happy enough with this – we had a good day yesterday and every minute we aren’t collapsing is another minute the bears can tremor, thinking about the last five years and what their short selling addiction has gotten them thus far.

I’m not ruling out more volatility just yet – the NASDAQ has dispensed some horrendous fortunes – but I am constructively optimistic about my own.

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BAS has completely reversed yesterday’s move. All hope is now lost.

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If not for Basic Energy Services turning on a dime and sprinting away from the rest of the trash that comprises this trading session, I would be having a pretty bad day.

UEC is down over 50% since I bought it. Mind you, as I have stated repeatedly, it is a small position. At its peak, it was under 5% of my account. So I’m not panicked here. But damn it, that was my 5%.

Give me my money back.

The trouble with the uranium miners (and the reason I’ve been very adamant up until now to just keep it simple and avoid the smaller businesses) is pretty forwardly summed up in UEC’s latest filing. They sold $0.00 in revenue in the first three months of 2014.

That’s $0.00.

The 2014 YEAR OF URANIUM BLISS (or whatever the hell I called it) …has been cancelled. Uranium spot just nosedived this week and, even though I suspect this flash crash is nearer the end of the turmoil, that kind of godless price action can only portend one thing.

Somebody is about to get liquidated.

I just pray it isn’t UEC.

CCJ is treading water daily. It’s all she can do to hold the line, but one false move and it’s a quick list to the side and down she goes.

The rest of my positions are holding up fairly well, actually. The multifamily theme remains tantalizing, particularly now that the primary argument against them – a resurgence in homeownership rates and a drop in occupancy for rentals – is such obvious bunk. AEC and MAA should continue to perform.

NRP has held up decent enough, following the 25% washout it took this year. That’s probably been my worst idea so far in 2014. But they are getting things under control, I have a hunch coal may be a terrific investment here, and I get to collect 8% annually while I wait.

I’m definitely not +10% for the year anymore, but there’s another 8 months to make something happen yet. My fear isn’t my positions, it’s what consequence an entire index of investors getting their combined comeuppance will have on me.

The NASDAQ traders got stupid. Real stupid. Will that spill over to me? It’s looking likely.

Like it or not, the stock market tends to take on a real flare of the vineyard effect. You pop up five vineyards next to each other, they all do well. Plenty of room to visit each, for the patrons. In fact, it draws in more business.

But if one of those bastards let’s an infestation go unattended; suddenly you have nothing but tears and reek wine.

Tesla earnings are out after the bell. Let’s see what happens there.

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