LAUNCHING PAD OR DIVING BOARD (AGAIN!)

Earnings are on the table this morning from big boy Enterprise Products Partners (EPD) which they call "solid" and that should not surprise anyone since this company after all is a big boy. It continues to reflect digesting of the Teppco merger. Duncan Partners (DEP) always reports with its bigger brother and results were good too. Regency Partners (RGNC) announces its distribution this morning and that is the only other piece of significant news as we head into the open.

Some interesting action in the markets this morning so its time to play the charts and see if they tell us anything.
The short term charts of the 10 year and 30 year yield appear (and i say that with caution) to be putting in some sort of bottom. The 10 year went to a lower low 2 weeks ago but without the 30 year so there appears to be the beginning of a steepening of the yield curve. Its a small change but it is meaningful to watch if the mlp rally is going to continue. On the 30 year chart below the 34 day moving average is turning positive on the slope and may be about to cross the other averages which would be bullish for yields on the long side.

The 30 year chart in fact looks like its about to break out of its short term base and the first challenge will be the 4.10 level. A steepening of the yield curve is good for the economy, unless of course we are seeing the beginning of a rate rise as a result of the dollars demise. And perhaps the bond market is telling is that it is no longer willing to accept less than 4% yield if the dollar is going to be devalued to zero by the feds printing press. Remember we had a failed auction 2 weeks ago on the 30 year and that may have been the ringing of the bell.

The dow chart looks unphased as we wait for 11,205 to be taken out on a closing basis. MLPS have been stradling a ledge for the last week or so and i've been arguing for a pullback to the moving averages which lie below. We are long overdue. The ex-distribution cylcle kicks off this morning with Kinder Morgan (KMP) the first to go ex dis by $1.07. Couple that with some sort of yield rise; maybe that will be the trigger. So lets watch trading carefully today.

The dollar is stronger this morning and yields may make another run at 4% today. Crude is down a little. Stock futures are also down a little pre open. Nat gas is entitled to go up for a day or so and yesterday we made a new low but came roaring back at the close to a few ticks higher. After all they can't go down everyday!