MARKETS RALLY ON THE EURO SOLUTION!

Somehow the Europeans managed to sit down and come up with a plan to try and solve the greek/euro crisis. CNBC has news story here while Bloomberg has this story and here is some video with the story and analysis. Naked Capitalism has analysis from the blog world. And for those of you who want to read something from the alternate universe here is the NY Times piece.

In the end its about waking up this morning to Dow Futures up 400 points (thats with 2 zeros not one after the 4) with Euro markets up 4 to 9% this morning. S&P futures are up 50 points so the initial reaction is that we are going to begin the process of undoing the damage of last week. The question for me is where we finish and whether it continues tomorrow but thats looking way ahead. We know we are going to rally sharply at the open and hopefully this is not going to be one of those reflex one day wonders. One difference from today and say back in 2008 when the world was ending, is that the economy was collapsing then..its not now. And the fear here was that credit markets were about to sieze up again. So we are at a different place today.

MLPS actually did well Friday closing 4 points higher on the index while the markets sold off hard. The risk trade returning will allow mlps to rise and outperform or at least that is my expectation. Some pre market trades in Kinder Morgan (KMP) and Nustar (NS) showing 2 point gains although in both cases as of this post, its only one trade. However many mlps are showing bids 50 cents to a dollar higher from Friday's close. So look for some nice gap ups at the open and then we'll sit back and look for followthrough.

Earnings news this morning from Trans Montaigne (TLP) and Quicksilver Gas (KGS) which look to be in line with market expectations. No other news items this morning. Nothing on the upgrade downgrade list so far. So we wait for the open and see where the day takes us. Crude is 2 dollar shigher. The dollar is selling off. 10 year rates rising as the safety money comes out.