OIL VS NAT GAS

Figured i'd start the day with the UNG vs USO chart over the last year and we've had Natgas outperform crude oil from last November to Early April. Of course during that stretch it has meant that nat gas was just down less but still down. Crude has crossed back and has been outperming again.

The UNG chart of course i still believe is carving out a bottom and setting up for a nice rally into the low 20s at least. The end of Mark Santoli's column in Barrons suggests that the Natgas crude oil relationship is now at 18-1 which 3 prior times has led to montrous rallies; unless of course this time it just means that nat gas will be down less! I will be betting on the idea that natgas is at a place where it will rally. Just my never to be humble opinion of course. And if that is the case watch nat gas exposed mlps especially the ones that may have commodity exposure as they could benefit greatly. Could this be the reason why Atlas Pipeline (APL) and Crosstex (XTEX) have seen their low share prices move up lately?

Monday morning blues out there this morning with stock futures down and energy futures down but i'm not too concerned here as markets are entitled to pull back a little. The rally that started last March remains intact and the skeptisim is rampant which i think is great.

The Mlp index is still thrusting upward and we are up over 80 points from the low of 150 which is a huge 53% gain. We are almost half way back to the index high of 340. We need only get to about 240-245 to make that wonderful claim! No corporate developements so far this morning and nothing on the upgrade downgrade list but it is early. So it looks like a weaker start and then we will look around and see where this takes us.