2 STEPS FOWARD 1 STEP BACK DANCE CONTINUES!

The trade has been to buy the pullbacks into the moving averages and it has been incredibly successful since the March bottom. It seems we are in another one of those up legs. MLPS are distorted on the charts here thanks to the Teppco takeout, ex distributions, and so on but 265 is the level to watch on this move. MLPS have not broken out to a new rally high like the dow has and this is fine for now. I like to give things a few days to play out the wrinkles. But i think we need to pay attention here in case we are beginning to build some sort of trading top. Remember btw that MLPS are up from 176 to 260 on the index which is a 48 % gain and lets add 4 distributions to that and you have a total return running at around 55-60% or so. And that is well above the returns of other averages.

Suburban Propane (SPH) reported earnings this morning which were down and below estimates citing weak demand. One trade in the premarket down 2 plus but it was a panic seller letting go of 300 shares and the bid is above the last trade. Wunderlich is upgrading Transmontaigne (TLP) to buy from hold. It is also raising its price target on Kayne Anderson (KYN) which is an mlp fund.

Elsewhere stock futures are a touch softer. We have oil and nat gas down ahead of the open. Inventory numbers are out later this morning and that will drive the oil complex today. The open approacheth!!