THE BIG "W"

We had an outstanding day yesterday in mlp land with the index up over 6 points. Suddenly we are poking our heads above the moving average support lines. And lets put this into a weekly context and you will notice that this entire correction has taking us right to support which has held. The daily chart looks like a W bottom formation. Considering how strong the relative outperformance is mlps may be poised to make new highs for the move.

Up 6 points, down 6 points, this seems to be the new world we live in. We have all noticed the mlp funds that have been showing up. Remember when a 1 or 2 point up or down move on the index was a big deal? Those days are gone folks. But with larger swings comes opportunity for those of you inclined to short term trade from time to time. Longer term the drivers for higher prices remain in place. Low long term rates on the 10 year and a yield spread over 3 percentage points will continue to drive money to the group. Also lets look at the BP mess and our little group looks like the safer way to play energy. No oil rigs blowing up here! All of this is playing into this bottom building process.

Stock futures are lower this morning ahead of job numbers which are due out shortly. Euro fears are swirling over Hungary and a few other nations. Futures are off their lows at the moment. Rates are falling in flight to quality. Energy is a little lower and we have no corporate news to speak of.

Sorry about yesterday's lack of posts but sometimes work gets a bit out of hand.