4 RELEVANT CHARTS

Tuesday after a long holiday weekend requires a little brain refreshing so here are 4 charts this morning and let us see what conclusions or ideas if any we can derive from them.



That Nat gas chart by far is the worst looking and it seems that only now that it is trying to carve out the beginnings of a bottom. The downtrend is broken but as measured by the UNG we could be in a range of 13-17 for a little while. I can't believe nat gas is going under 3.00 in the futures so this should be a safe place to accumulate in here.

The crude oil chart on the other hand looks a lot more constructive and we have a nice base built there. As measured by the USO it could run to 40 before being turned back. That takes us back to the December high. And of course equities will play a roll here as it appears 50 s&p points equals about 7 dollars in the crude price. Players can use the USO or for the more agressive the DXO which is the double crude and do "ladder" in.

The dow chart is still in the context of a base and it has an inverse head and shoulders look but to confirm that we need to take out 9000 which only takes us back to January 1st on that chart. The mlp index of course has been in its own little world as its up nearly 30% total return since January 1st. If it ain't broke don't fix it is my view. We're the leaders here and there is no sign if that changing.

This morning is free of corporate developements. We do have Citigroup downgrading Legacy Reserves (LGCY) but they have a 14 dollar going priviate offer on the table. Stock futures are only slightly lower as they have rallied from the morning lows of -7 to -2 on the S&P. The open lies straight ahead.