MLPS AT THE 270 WALL!

Thought it was time to look at the MLP weekly chart and notice that through all of this rally that began a about a year aog, it is only now that the moving average lines are crossing and sloping higher which is a good thing. The 34 week moving average is now positive for the first time since mid 2007 and the 55 and 89 week moving averages are about to cross. These are all good things and bode well for 2010. Now a correction down to the moving averages themselves could occur at anytime but if that happens, as long as they hold then we are still bullish on the group.

El Paso Partners (EPB) hits the wires this morning with positive 2010 guidance. Also this morning earnings from Ferellgas Partners (FGP) which beat by 6 cents. Conference call to follow this morning. Those are the corporate drivers this morning. No other news items and no upgrades or downgrades

Stock futures are higher this morning and it looks like we may begin another one of those 2 steps up in this 2 up 1 down pattern. We continue to have trouble around 10,500 but with mlps now at 270 and leading, we could be poised for another upside breakout in our group. Note i have been cautious up in here lately and there are seasonal factors at play. But since the Barrons piece Monday favoring MLPS among other things, we continue to enjoy good relative strength.

One of the year end trades to watch for is the tax loss selling that is evident in the single digit MLPS that have issues. These could be setting up for big bounces once tax loss selling is done. Once that pressure comes off we could see some nice moves in those MLPS that have option like prices. I;ve been building a position in Crosstex (XTXI) in trying to play this seasonal bounce but remember you have to be in the right one and there are never any guarantees in these sorts of things.