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Friday, January 28, 2011


As you all know i have been talking up the chart of nat gas lately but i must say that, after giving nat gas ample opportunity to break out of its' base, it has not only refused but the market has been pretty much going down all week. Yesterday we broke below support and i think i am going to step away for the momment. Holding a small long position after several successful trades over the last few weeks.

Using the UNL as a could go to 33 and hold..or even a trip back to the lows not impossible.

Meanwhile the GDP numbers have taken the 30 year yield to a new trading high this morning and it looks like we are breakout out of this recent base for another upleg in rates. Stock futures aren't doing too much though they are firm ahead of the open. Lets see if the rate rise takes its toll as the day wears on. The 10 year is at 3.44% and 3.50 is probably the magic tipping point in my view. And with rates ticking up MLPS need to be watched to see if they sell off in response. Still they sit just below all time highs.

Buckeye Partners (BPL) is doing an offering but it is not a secondary offering. Buckeye took over Buckeye Holdings (BGH) and now those shares are being sold. The stock is down 3 dollars in the pre market. Again there is no dilution here. So this could be a buying opportunity. And we have good earnings from Alliance Resource Partners (ARLP) which is raising the distribution which they do every 6 months as opposed to every quarter like other mlps. No trades in the premarket.

The open looms ahead. Could be an important day ahead.

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