THE BREAKOUT ABOVE 4!

It appears that long rates (30 year) have at least made some sort of short term bottom as we will open this morning above 4% for the first time since early August. News from the WSJ that the feds actions on QE2 (quantitative ease) will be more measured rather than some sort of shock and awe. And their buying will be concentrated on securities less than 10 years. That means the long end, which the fed has little control of, will be able to rise in yield. Implications for mlps? Well one could come to the conclusion that the ride down from from 4.80 in late April to the bottom came with MLPS going from the 275 ish low in May up to 352 today. Are we poised to give all that back? Well doubtful without a full fledged market meltdown. First off the yield has to break 4.10 and then 4.20 for me to really start to turn negative for the medium term on mlps. But one has to consider that there could be a headwind developing here that may at least play into relative underperformance.

Earnings are on the table this morning for Alliance Resource Partners (ARLP) where it was a record quarter and we have a distribution increase. And of course what's good for the LP is good for the GP (AHGP). DCP Midstream (DCP) announces the distribution, and so does Martin Midstream Partners (MMLP), Holly Energy Partners (HEP), and TC Pipelines (TCLP). More earnings are due out later this morning and i will try and post the links for you.

Stock futures are a little lower this morning. Long rates open higher with the 30 year at 4.05 ahead of durable goods. Metals are lower as is crude. Nat gas is flat. The dollar is mixed right now.