HINDENBURG OMEN?

STILL ON THE ISLAND

Some chatter last night about the Hindenburg signal being triggered which is a technical signal that doesn't happen too often but says that a 5% or more downside move is coming very soon. We'll see on that the tape does feel very weak

That dow chart looks pretty awful as it heads into the March lows. At least the MLP index is above those lows but we're not looking to hot either with this endless sideways movement plus or minus a few points of 290. But we're a long way from the March lows of 262.



Crude dropped 5 dollars yesterday but it remains in that island channel so the island reversal threat remains if we could ever get a gap down open below the channel and then some followthrough. Crude is up 87 cents this morning in the pre market and it was up yesterday until the China news hit just before the open. There is always hope. But remember that the direction of crude is not always the same as what the energy equity does.

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This morning Citigroup starts Western Gas Partners (WES) at a hold. This new MLP has gotten a host of opinions all week long now that the quiet period is over. No other headlines so far but i will post before the open if anything hits.