MONDAY MORNING CHART PARTY!

A new week begins and its always good to look back at what happened last week and try to draw some conclusions about where we go from here. Last week's begin event for me was another failed auction on the 30 year treasury and as a result the 30 year yield continues its climb. Last week we closed near the week's highs and that climb continues this morning as we are sitting at 4.33%. Following this morning is the 10 year as we are at 2.89% which is a breakout above the 2.80 base. So clearly long rates led by the 30 year are going up.



Last week stocks and mlps both pulled back. Last week i threw in the correction towel Wednesday morning at 365 which of course became the high for the week and we're down from there although on 2% off the high which isn't much. The dow pulled back and is close to its 11,100 support area. Any intraday sell off puts us right there so its important to watch and see what happens when we get there.


The rise in long yields remains something to keep a weary eye on because much of the last leg in the MLP rally came with an unrelenting decline in the 10 and 30 year. But that appears to be overwith. One has to wonder where is the point where it begins to put pressure on MLP prices. If the yield rise is real, there could be a problem.

Copano (CPNO) and Kinder Morgan (KMP and Chesapeake(CHK) are joining forces in Eagle Ford shale. Thats the big news story of the morning. Chesapeake provides the gas and Copano and Kinder Morgan do the pipeline. On upgrades and downgrades Cheniere (LNG) gets an upgrade of its price target to 5 bucks. This is one of the few remaining single digit player. Not much else happening this morning.

Stock futures are higher ahead of the open and after a stronger retail sales number. Metals are mixed. Crude is higher and nat gas is lower. The dollar is holding its own this morning against the major currencies so far.