THE DAY AFTER

The psychology of the markets is such that we all seem to want to sell the rally. And that defensive posture seems wise given what we have been through. Still the day after the big rally will start strong with S&P futures pointing to a 4% upside open as of this post.

And as expected MLPS bounced very hard yesterday up over 300 points and we should move above the 200 level. What stands out to me yesterday is that you had these mega moves of 4, 5 and 6 points in prices and that still leaves us so far below what anyone would consider normal yield levels. To say we have a long way to go is an understatement.

No headlines in MLP land. Friedman Billings is downgrading Legacy Partners (LGCY) to market perform from outperform. Second downgrade this week after Goldman cut it yesterday. Energy is up. Interest rates are up which is a good thing. Now we wait to see if we can put 2 back to back 90% up days.