CALUMET EARNINGS AND THE RUN TO 300!

Yesterday's nearly 6 point gain on the mlp index gives rise to the idea that we have made a short term bottom last week in the 270-275 area. We touched the support lines in the rising moving averages and it appears that the mlp index wants to challenge the top of the range at 300. It could be that a trading range is emerging here between 270 and 300 where MLPS can consolidate. We'll see. But with the dow up 170 yesterday the big mo is there for the rally to continue.



The dow chart appears to be trying to do the same thing which means a run to the top of the range would take us back to 10700. MACD indicators have turned to the buy side so the charts certainly are supportive.

The weekly charts below show how the Dow traded right into its rising weekly moving averages. So far everything that has occured has been pretty logical. The mlp index weekly chart did not reach its rising moving averages since the group has been so much stronger relative to anything else. Still no sign of a breakdown of that outperformance that began 14 months ago.




Calumet Specialty Products (CLMT) is on the news docket this morning with earnings. The company has comeback off its lows and has even boosted its distirbution this quarter for the first time since cutting back in 2008. Also we have an MLP IPO coming as Chesapeake (CHK) is planning an ipo of its midstream assets. Sign of a healthy mlp market but we should keep are eyes on this in case things are getting a bit too frothy.

Stock futures are higher this morning so we may get some followthrough at the open. Energy is higher with oil also showing strength after yesterday's 2 dollar plus gain. So it looks like a higher start.