AFTER EMPLOYMENT
WHICH CHART DO WE BELIEVE?

The more boyant employment numbers this morning have sent bond rates rising but since the fed has made it clear its focusing on 10 years or less, its causing a bit of a divergence in the charts and a steepening of the yield curve. Now this is a good thing to see as the steeper curve is a sign that the economy is about to pick up. Or at least thats what the fed wants to see as is sucks out supply on the shorter end and effectively floods the system with money.



Its the 10 year chart which im particularly intrigued with as it looks like its has stopped going down but no decisive breakout as shown by the 30 year. Clearly the long end of the curve has broken out short term with 4.20 the first line of resistence. We got to 4.15 this morning. That failed auction on the 30 year last month was a great buy signal and so far it has borne out nicely. At some point its going to mean that a headwind may develope for mlps, but not until the 10 year and the 30 year behave in line. Still it is something to watch.

Markets open a little higher this morning after yesterday's big day. MLPS open up another 1.20 and the list has a host of fractional gains. Crosstex(XTEX,XTXI) put up earnings this morning which were as expected. Both stocks are up a few pennies. DCP Midstream (DPM) also has earnings news that was in line with estimates.

Overall a good week. Breeders Cup looms as we head for the other casino later today. Go Zenyatta, Go Goldikova, and Go Red Desire!