MLPS BREAKOUT TO NEW ALL TIMES HIGHS
NATURAL GAS NUMBERS TODAY

We saw the mlp index close yesterday above 336 and that is a new all time high close. Volume is light this week due to the holiday but that can be fixed quickly. Also the index did this yesterday in the face of the 10 year which spiked up to 5.13% and it is sitting at 5.15% ahead of the employment numbers this morning. 5.25% on the 10 year is baked into prices so if that level holds...onward and upward...if it doesn't look for this to be a false breakout. We may actually get that answer this morning at 8:30am


This morning energy prices are higher in the crude and gasoline complex. Natural gas which has been selling off for the last 2 weeks is flat this morning awaiting weekly nat gas numbers at 10:30am. I am guessing here that bearish gas numbers may be priced in so if they come in as expected the market will rally. This happened in the oil market last week before the run over 70 bucks on crude. So i am taking a shot here with the natural gas ETF that trades on the American exchange (UNG).

I built a position yesterday and also bought some call options (july 45 calls). Now lets make it clear i am not recommending anyone do this. I am just telling you this is what i am doing and it is a gamble that all the bearishness is priced in. Longer term you have to wonder whether natural gas has priced out a hurricane premium so when the real season gets underway late this morning or in August that the contract can rally back to 8 or 9 dollars or higher which means the ETF can head back to 50 or so.

No corporate developements and no upgrades or downgrades so far.