Good morning. Went to see La Boheme at THE MET at Lincoln Center last night. It was my first opera. The main character dies at the end...the audience dies far sooner!

There has been a general thesis being put out there by MLP observers that rising interest rates have hurt prices in the last 3 months. I would contend that while prices have been hurt the cause may have been more the huge amount of stock offerings and the market correctly anticipating this...rather than any rise in long rates. My reason for this is plainly and simply long rates not only have not really risen in the last year but are still below the April 2004 peak at 4.90%. Short rates have climbed and i think you could argue that risk free 4% is attracting some shorter term money away. The yield spread which shrunk to under 2 at one point in July have now risen to over 3 in some cases like APL and MMLP.

I bring this up mainly because the 10 year yield has been falling since reaching 4.64 a few weeks ago and if you look at the chart we be ready for 10 year rates to drop which of course is supportive to MLP prices. Add to this is the improving technical action in the group and i think (in my never to be humble opinion of course) that the correction in these stocks is over and its time to buy! Again look for the strongest looking charts...

Yields are falling this morning...futures are higher...crude is lower. No news or upgrades/downgrades so far this morning. Waiting for the open.