END OF QUARTER!

As always when we approach these kind of days where distortions abound, we can say it was indeed an excellent September for the overall market. For mlps it was okay with a 5% gain in the index from 320 at the beginning of the month to 336 today ( depending on where we finish). Futures turned nicely higher on jobless claims which were better this week. Not much happening in the premarket for mlps and there are no corporate news drivers. The dollar is down, rates are flat, oil is higher and nat gas is lower ahead of weekly numbers.

With the beginning of Q4 and the bull market in MLPS coming to its 2nd birthday, one has to wonder whether the supportive leg of low rates has to evenetually reverse itself. This arguement has been on going for 2 years now and for 2 years conventional wisdom (mine included) has been totally wrong as long term yields when from 4 to 2.50 on the 10 year. Unless money is going to absolute zero like Japan, you would have to think at some point they have to go up. That comes with a meaningful economic recovery which so far remains elusive. Not elusive is the open which looms shortly.