SIDEWAYS AND QUIET FOR NOW

The mlp index has moved into another one of these sideways consolidation modes and with rising moving averages we continue to view the action as bullish. What has been particularly interesting is the number of companies coming to market selling equity and then within a week or two after the offering the prices of those mlps are higher than the offering price. This is actually a reversion back to normal trading behavior; the type we saw during bullish runs in 2006 and 2007. No arguements. The trend is our friend. Meanwhile speaking of offerings another one hit the tape late yesterday. EV Partners (EVEP) is doing a stock offering and they are also purchasing some assets and doing some more hedges. Stock is down a buck and a half in the pre-market.

19 to 1. That is the relationship now between crude and natural gas. The normal relationship between the 2 long term is...are you ready for this...8! So if we ever revert to the mean here the nat gas price can easily double or more. Somebody please tell that to the natgas traders please! It is beyond ridiculous but i continue to view nat gas as a good low risk buy in here. One of these days its going to rally and rally hard.

Not much else happening this morning. No other corporate headlines and no upgrades or downgrades so far. Crude is higher this morning along with nat gas, Stock futures are higher and today's trading waits for the final leg of the 3 day bond auction. Many years ago when auctions mattered in another era i seem to recall that the middle auction almost always went badly while the final leg usually went okay and then followed by a sigh of relief rally. It didn't always play out this way but it did so enough of the time. Note btw that the 10 year/mlp yield spread is shrinking from both ends here as rates rise and mlp prices rise. For now rising yields have not had any negative mpact on mlps and i suspect that for now its not a big concern.