GOOD MORNING! We begin this monday morning with news from Energy Transfer Partners who is raising the distribution by a nickle (10%) to 55 cents a share and increase earnings guidance as well. Should be worth some upside here. No other news so far this morning.

Energy Complex is rallying this morning especially Natural Gas.

Above is the daily chart for crude verses the 10 year price...Since Hurricane Katrina they have been in lock step...falling crude/rising yields. This chart implies crude will impact the economy as prices rise above 60 dollars.


This is the natural gas chart vs the 10 year. Here its been rising gas/rising yield. The implication here is that rising gas prices will raise yields and be inflationary.


The daily chart on oil/10 year shows how much in lockstep they have been since August.



Seems like the market has discoverd that now we will indeed have a winter as cold air has spread out across much of the eastern two thirds of the US. As per MLPS i am cautiously predictiing that a bottom is being put in place here as volume looks to be drying up in the last several days with some individual selling climaxes occuring. But the charts of most of the group look pretty awful and we need to see these guys to move above their 34 day moving averages. No sign of this yet.