CRUDE, NAT GAS, HEATING OIL

JUST KEEP ON GOING!

Tuesday's after a 3 day weekend always feel like its slow to get going. And here in MLP land we are always even slower than everyone else. Outside of some corporate changes being announced at Crosstex Energy (XTEX,XTXI) we don't see too much happening. The energy markets however are moving higher. Crude is up around 1 dollar, nat gas has a 12 handle this morning and heating oil is just about at a 4 handle. Amazing that every hint at a selloff brings in more buyers. But this insanity has to end somewhere.

We need to recognize a few things going on right now that might have impact. Keep an eye on the big energy stocks. They sold off Friday with everything else and in fact were among the overall markets biggest losers. One day does not a trend make but as i have pointed out many times we will be dragged along. The overall market sold off last week on 4 of the 5 days and we have given back about 1/2 the rally in the dow to 13,100. The good news is that the MLP index is holding up better in here relative to the action we saw in the first 3 months of the year. Interest rates are rising with the ten year at 3.83 which normally would be a negative but i wonder whether we're at one of those points where that part of the equation has some head room before we have to worry thanks to very wide yield spreads over the 10 year. Also watch Lehman and whether trouble is brewing there since they hold large stakes in some mlps and we know what happened last March when they raided Lehman after the Bear Sterns collapse. I'm not suggesting a calamity in here but we are at tipping points on many issues and if the bear market exerts itself and the overall market falls to new lows guess who will get pulled along for the ride. So let us be vigilant for developments.

Nothing else going on this morning and no upgrades or downgrades.