ITS STILL ALL ABOUT BONDS AS

MLPS STAND THEIR GROUND!

Bond market gyrations continue to wag the dog here as the rally from the 5.36 peak to 5.20 on the yield gave us a 3 point MLP index gain so we continue to hold 320 on that index. Inflation numbers on producer prices out this morning is being watched closely so that will be the broad market driver. Energy prices this morning are higher again across the board and stock futures are higher and above fair value.

This morning in corporate news we have dead silence and nothing on the upgrade downgrade list.

Tuesday's action caused me to get very cautious on the group and of course yesterday's action proves how the market can humble you quickly. As it happens i sold out a couple of trading positions on Tuesday and when mlps began to firm up yesterday i was able to get back into the same positions at slightly lower prices before they rallied. Such is life when one trades but fortuantely this group sometimes takes its sweet time joining broad market parties which gives you time to change course.

Meanwhile Terra Nitrogen(TNH) closed yesterday at 98.51.Will today be the day this one finally breaks out over 100? Ten year right now at 5.22 and stock futures are strengthening ahead of ppi.