MONDAY MORNING FIRMNESS!

Starting out the morning with futures higher and we have a fed meeting this week that will probably dictate some sort of short term move in one direction or another. I would think these guys will come out and downgrade the economy again (SHOCK) and the market may respond like its a big surprise (UNLESS YOU LIVE UNDERGROUND IN SOME BOMB SHELTER). Barrons this weekend in Mike Santoli's piece argues that a pullback may be at hand. Certainly the chart suggests we are at the top of the recent trading range from 9800 to 10700.



MLPS in this market rally have not gone on to new highs and there could be a number of technical reasons for this including the fact that the group has been such a standout performer this year and maybe there are some end of quarter pressures. However it could also be that interest sensetive stocks may have little to move on if the bond market has reached some sort of long term peak.

The 10 year rate came down to the March 2009 low and has bounced right off of that. However before we come to the conclusion that the bond rally that really began in 1982 with long rates at 14% is over, we need to at least break that downtrend line! And maybe we need to take out 4% and we are a long way from there.

This morning in MLP land Holly Partners (HEP) which is back above 50 is getting a downgrade to neutral from buy. And that is really the only thing going on this morning. We're at that point in the cycle where not much happens and we are a month away from earnings and distribution announcements. Stock futures are higher along with slightly higher energy (except for nat gas). Rates are flat to a shade lower or higher depending on where you look on the curve. Gold is higher as it sits a shade below 1300.