OUTPERFORMANCE CONTINUES

This is has been an interesting week in several ways. We've had some painful days in the broadmarket and a couple of days of essentially doing nothing. It feels like summer. The mlp index has been showing strong relative outperformance on both down days and on up days which is a bit unusual in that much of the time if we have a sell-off one will lag the other by a day and then things even out over time. But MLPS have continued to consistently outperform in both directions which is indicating to me that money is coming in and on down days..very little is coming out. It could be we are seeing some across the board accumulation ahead of the next round of distributions and earnings.

This morning we have soft markets in both stocks and energy. Crude is decidedly under 60 bucks and nat gas which we know is going to zero is down a little. Speaking of crude i have begun buying the DXO which is the double crude oil and will probably accumulate more with oil under 60 bucks. Not much else happening this morning on the corporare side. No upgrades or downgrades on the list either. So it is shaping up to be a typical Friday in summer. We suggest limit orders on the buy or sell side and then head to the beach or pool as it is probable that not much will happen today.

BTW Ron Insana who was on CNBC for years and is on from time to time has turned strongly bullish and is predicting a big stock market rally is coming. I like Ron. I think he is a very sharp guy and i remember his very timely and gutsy call in 1998 when he called the market turn in the Asia currency crisis. He doesn't make these sorts of calls very often so i think its wise to pay attention in here.