SOME MARKETS MORE

BROKEN THEN OTHERS

Crude oil gets almost all the attention and the uptrend line is broken so we have been seeing a correction in prices. Crude is down another 2 dollars this morning ahead of the weekly inventory numbers at 10:30am

But while that is going on take a look at the natural gas chart as proxied by the UNG which has gone into freefall here. We have gone from a 13 handle to a 9 handle in a hurry and i think this correction continues. Its funny how markets can go from that sense of it never going down ever again..and once it gets to that point the uptrend usually ends.


Of course the opposite is true in MLP land where they never go up anymore and never will again except for the occasional one day rally. I put up this chart of the MLP index vs the DJ Oil and Gas Index vs the S&P. Its just a short 5 day chart but i just want to point out that after being killed in performance vs big energy...the lines crossed 5 days ago. So congratulations. We are going down less than big energy!




Bottoms are processes and not necessarily events so i'm giving it another day to follow up Monday's nearly 8 point gain. 277 on the chart is the first headwind.

Sunoco Logistics (SXL) reported earnings after the close yesterday and it was record earnings, record results, distribution increase...so you know the stock will be down today! Some news items from Semagroup (SGLP) whose bankrupt parent says it plans to sell off some of its subsidiaries and get its business back in order. They apparently lost money in the energy markets. Wachovia upgrades the stock to market perform from underperform. Nothing else on the corporate news front this morning.

As we said before crude is down around 126 this morning...nat gas is down and with a 9 handle and gasoline is just above 3 dollars. Could a 2 handle on gasoline be with us in short order? Hope so.

Headlines as they break.