HAPPY 4TH!

Two charts to take a look at over the weekend. Of course our MLP chart is telling us we are in free fall again and it looks like we will at least retest that 262 March low and below that support is at 255. Meanwhile the Double Short Oil and Gas (DUG) looks to me like its put in a double bottom and is ready to breakout of this base. Note that late last week we saw the winners in this market rolling over. Coal has crashed; down 20% in 2 days. Couple that with action today in Europe where S&P futures closed down nearly 9 points as Goldman downgrades a number of European banks. I think we may be setting up for a final big selling climax Monday and Tuesday imho. At least i hope thats the case because until we can get that final flush the torture will continue.

Crude oil closed down 1.04 at 144.25 in electronic trading today but there weren't alot of players around so i don't want to read to much into this. I guess we have to sit tight until Monday. Can't lose money over the weekend.

Now to something that's been bugging me a bit. I love lots of comments on my posts, don't misunderstand me. But unless you own Cheniere Energy (LNG,CQP) or US Shipping (USS) where clearly there are corporate issues...please remember that unless there is something news specific to those companies that we are in a bear market. It asks no questions and takes no prisoners. Its all about selling and all about cash. MLPS may not be understood by most people because they are in a special class of security. There is no access to capital so deals have been few and as wise "Mr Pipes" has pointed out several times; it is interesting that private people seem to be seeing value in here. Look at Plains All American (PAA) where Oxidental Petroleum has taken a 10% stake in the general partner. They must see something of value there. GE has its stake in Regency Partners (RGNC).

So when someone posts and says...this stock is a pos because i bought it and it went down...well thats life. I made the mistake of buying refiners too early because i reasoned that oil was about to crack and refiners would benefit. Maybe i will be right eventually but its obvious that i bought too early. My misjudement short term but it might pay off long term. If this game were easy it wouldn't be worth playing.

One day this bear market will end and we will look back and realized we have endured a vicious bear and survived. Think of all those holders of financials or General Motors or anyone of hundreds of companies i could name that have seen large chunks of their portfolios completely wiped out with no chance of recovery. Things are bad here..but thankfully not that bad.

Okay so enjoy the beach...the pool...hot dogs...ribs...fireworks. And we'll hit the gate running on Monday.

One final note. Here is some IRS news about partnerships that might make you happy.