TIME FOR A PULLBACK?

The employment numbers were terrible this morning on face value but i tend to agree with many of the talking heads this morning as it just doesn't feel right given the other data we've been getting lately. But then again since the dow is up 350 in 2 days, i thought the market might sell off a bit anyway. And frankly if the numbers were really bad the futures would be much lower than they are right now. Bond yields went to 3.06 on the 10 year and 4.29 on the 30 year before the number and we are at 2.91 and 4.23 respectively as of this post.

MLPS have gone nowhere during this rally and you have to wonder whether this is a sign that we are about to take a back seat here to everything else. I will be interested to see how they react today with rates pulling back. Newswise this morning Teekay Offshore Partners (TOO) is doing a stock offering today. It seems everyone is coming to market with their stock prices not too far off 52 week highs. No other headlines this morning and no upgrades or downgrades.

Two charts of note this morning. Take a look at this nat gas chart. It certainly looks to me like it is putting in an important bottom in here so we look for those moving averages above prices to get penetrated in the short term. Weather patterns are very favorable for nat gas over at least the next 2 weeks.



Meanwhile even with bonds selling off this morning notice the nice uptrend in place on the 30 year. Nothing that's happened today changes the idea in my mind that 30 year rates are headed higher. Short term im thinking a run to 4.50% is doable.