HIGH PRICES BRING PUBLIC OFFERINGS!

Two mlps are taking advantage of a robust stock price to sell stock Regency Partners (RGNC) and DCP Midstream (DPM) are doing secondary offerings. Both stocks are trading just below their 52 week highs and both stocks are down by more than a buck each in the pre market. nd from yesterday Markwest (MWE) put up earnings and they have a conference call set for late this afternoon. Those are the corporate news items this morning. The overall market is the story this morning as perhaps markets re think the fed move and stock futures are down 140 dow points pre open. However look at the dow chart and notice that the moving averages are crossing on the dow chart and are turning positive. This lends to the idea that the dow breakout above 10500 is holding and the rising moving averages will lend support here.




The mlp chart can be looked at 2 ways. Do we have a short term double top in place? If so watch support lines below and see if they hold this morning. On the upside notice that we have these selloffs everytime we go through the distribution cycle and (at least so far) they have been great entry points to take us to higher highs. The key will be what happens to long rates as lately we've been pretty much tied to the hip of long rates. I suggest you watch the 30 year rather than the 10 year (TYX) for clues to this as those rates have not gone to new lows just as mlps have not gone to new trading highs. If mlps break down from here it will be a sign that rates are about as low as they are going to get. Bulls at least will have the opportunity to pick up additional shares at lower prices. The open looms in 40 minutes.