DAY AFTER HELICOPTER BEN!

Yesterday's fed move to essentailly throw money from helicopters in order to stimulate the economy was pretty much in line with market expectations but the biggest reaction came in the 30 year bond which went from 3.86 at 2pm to 4.07 at the close Wednesday for a 21 basis point turnaround. The feds move is concentrated in buying notes 10 years or less in duration which means they want the 30 year rate to rise in order to steepen the yield curve. Judging by the chart action it appears that long rates have bottomed and we may be at the beginning of an upleg which will take us back to 4.80%, which btw is where we were just 6 months ago.



MLPS meanwhile finished a little lower yesterday and i continue to think its time for a trip back to support. Maybe the rise in long term yields will be the trigger. But the market continues to defy my expectations. Market trading is a humbling experience. BTW the TBT which is 2x the 20 year yield was up 4% yesterday and for the brave among you who want to play the yield casino, its a good way to play rising yield. But its for trading purposes only and not for the faint of heart.

Lots of news to chew through in MLP land. First from last night after the close Genesis (GEL) announces a public offering of shares. The stock is down 1 this morning. Plains All American (PAA) announces earnings which were strong as usual, and Martin Midstream Partners (MMLP) put up earnings as well. This morning we have earnings from Exterran Partners (EXLP), Targa Natural Resource (NGLS) announces earnings and distribution numbers, and Eagle Rock (EROC) announces its distirbution of .025 but it says it plans to go to 15 cents next quarter! We are waiting for Spectra Energy Partners (SEP) and Copano (CPNO) which will come out after the close.

Stock futures are higher this morning ahead of the open. Gold is higher, the dollar is getting clobbered. Crude is higher and nat gas is higher as well.