PULLBACK IN ORDER?

I suppose. We've been in bull mode for 3 months and for the year the MLP index is up 32% which is not too shabby and way better than the overall market which is up about 5% on the S&P. Stock futures are down this morning but lately these down opens have been the lows of the day as buyers come in on these short pullbacks. If we continue in bull mode pullbacks will take us to the moving average support lines. Note the dow has been in this stair step sort of pattern and if we are in another step mode in here then 8600 should be the floor. The mlp index can take us back to 220 where the 34 day moving average sits.


On the mlp corporate side there isn't too much happening so far. Eagle Rock filed and 8k announcing some more hedging. In another 8k filing Ferrellgas (FGP) is being sued by a San Francisco consumer group related to Blue Rhino which is that fabulous propane tank exchange. I use it all the time although Ferrellgas says in the filing that the entity is being sued for deceptive practices including paying for a full tank and getting only half a tank! So far this morning thats all we have as far as corporate developments. Nothing on the upgrade downgrade list so far.

Crude is about a buck lower but nat gas is a touch higher this morning. Maybe this is the week nat gas gets off the mat and climbs back over 4 dollars. I was looking at weather patterns overall and a couple of things i've noticed. This is a very chilly pattern for June. First time on record snowfall in the Dakotas in June, Chicago is having its coldest June in 50 years. Here in nyc its been cloudy and cool with an ocean wind for 10 days in a row and no break in sight. Its very cold in Greenland and i could go on and on. A few meteorologists who work on this are making comparisons to the summer of 1976 which led to the coldest late fall and first 1/2 winter on record in many areas of the midwest and northeast. January 1977 in many cities is either the coldest or second coldest on record. Not that things repeat exactly but if it were to copy that mode, then nat gas and heating oil look very cheap in here!