MLPS HOLD 300 ON THE INDEX

It was my theory yesterday that somebody (read hedge fund) was unwinding yesterday as the index was weak all day long until about 2:30 when some nibbling began. Also most of the losses were concentrated in the bigger caps in the index like Oneok (OKS) for example. I can't prove it but it just had that feel. Still 300 held and now we need to get back to 307.25 to get above the 200 day moving average.

Chart would suggest lower prices in the short term but the overall market which remains schizophrenic is dictating the pace.

So far this morning its quiet on the corporate news front and there are no upgrades or downgrades so far. The energy complex is flat this morning except for natural gas which had a whopping 8% gain yesteday and is adding a few pennies this morning as it sits just under 6 bucks. That was a huge reversal from yesterday's early morning loss of 25 cents to a gain of 49 cents by days end. You can hear the shorts screaming in agony. The 10 year is sitting at 4.33% this morning. Remember that 5 handle??? Long gone now. But at least the risk premium is back into MLPS with spreads of 2 to 3 points over the 10 year in yield. So at least we can argue that these stock prices are at no worse than fair value. And insiders continue to do some shopping. Check out the action in Crosstex Energy (XTEX) as an example.