IS LEADERSHIP ABOUT TO CHANGE HANDS?

This is a question that is quite frankly very difficult to answer and there are so many factors that go into determining the answer. 22 months ago MLPS made a bottom that has carried them back almost to new all time highs and they've wiped out the bear market losses of 2008. But the action short term lately has been a bit lackluster in mlp land. Notice that while the dow industrials have put in this corrective pattern that has taken us from 11.200 to 9800 and now back to 10800 co-incides with mlps which have hardly corrected in that time span. However this September has not boosted MLPS back into its leadership position.



Now there could be a number of reasons for this including the stock offerings that have announced since August plus the off months for mlps tend to be news free so there aren't any drivers on the corporate side. Or it could be the overall market just playing catchup. The leadership change, if it comes, i believe will come when interest rates truly have bottomed especially on the long side. And while the longer end of the curve is off its lows, there is no sign of an uptrend developing there. Usually when risk takers go out there they tend to shy away from interest sensetive stocks when there can be better gains had elsewhere. And now of course we march toward the end of the quarter and the games that go along with that so the next few days should prove fascinating as usual.

This morning there are no corporate news drivers and no upgrades or downgrades. Linn Energy is up 76 cents on volume this morning but i don't see any headlines. Crude is up and nat gas is down this morning. Euro markets are flat. Gold is up around 1300 and the dollar is down slightly as we head into the open.

Sorry about no posts on Friday but i had a family issue i had to contend with. Things are back to normal this morning.