MLPS APPROACHING TOP OF THE BASE

WEEKLY CHART BUY SIGNAL?

Yesterday's broad rally which took the MLP index 4 points higher and saw the devestated GP's wake up as well now has taken us to the top of the base where we will challenge 275 along with moving average headwinds.

The weekly chart is pretty interesting since we came down and it appears successfully tested the 200 week moving average (that's almost 4 years kids!) and we need now to put some distance between that and the current level @ 271 and some change. The weekly chart last went to a buy in March and that led to a reflex rally. I think this time we could be at the beginning of something that has longer term implications.

What was really encouraging about yesterday's action to me is that MLPS outperformed everything which is a huge sea change from prior trading action. Now i know it was only one day so i am looking for follow through action today to confirm. But this stuff is so underowned that we could have room to run perhaps as high as 280 or so in a hurry. But 275 is the first headwind and if we are in a basing period it could turn us back down to do more work.

Some chatter on the Constellation Energy Partners (CEP) message board that the parent Constellation Energy (CEG) was either planning another asset dropdown or might be preparing to unload its 50% stake in the company. The company had an anal-ist day yesterday and apparently hinted at this. Since the company stock price has gone from 50 to 15 i can't imagine anything could make things worse. Now we have this breaking news item about the parent selling its gas assets. Does that mean that Constellation is going to sell its stake or are they talking about other assets? Anyone have clues here?

No news this morning and no upgrades or downgrades. Crude is higher and so is natgas as Gustav concerns continue. All the latest info from The National Hurricane Center. Stock futures are flat this morning ahead of GDP @ 8:30AM. Overall tape had a firm tone to it yesterday so i would expect that to continue today barring a disaster on the GDP. There were a few laggards among MLPS yesterday and i would expect those issues to take to the front today if this rally has legs.

The top of the current trading range is 275. Will we breakout or breakdown?
	BREAKOUT (MOVE ABOVE 275)
	BREAKDOWN(MOVE BACK TO 260)
pollcode.com free polls

And i posted another poll last night in view of yesterday's action. The first poll from last week results show the bullish bias that you would expect. 63% of you thought we'd be 280 or higher (combining the bullish choices) while 19% (combine bearish choices) thought we'd be 280 or lower. 19% of you said we'd be at around the same place by year end (265ish). We'll do this again in a month or so to see how sentiment has changed.