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Thursday, March 24, 2011


Another up close yesterday and this morning MLPS are sitting poised to make all time highs with one good push from the market tailwinds. Stock futures are following through this morning from yesterday's up close. And while there are no particular corporate news drivers in the group this morning there are a couple of things i picked up last night. Leon Cooperman, better known to most as Mrs Mary Hart, has always been big on mlps. On CNBC he came up his 17 (why 17 why not 18?) of his favorite picks. What stood out me was the fact that there were no mlps on the list.

Is he keeping the fact that he likes MLPS a secret, or he is telling us that MLPS are overvalued here. You decide whether what he picked or didn't pick is relevant. Then there was this piece regarding treasuries where it is suggested that instead of bonds, one should perhaps look at mlps!

Now i just wonder if yields begin to really spike higher that you can justify shrinking the yield spread between mlps and treasuries to lower and lower levels. Granted the spread is still at the top of what used to be the normal range of 2 to 3%. I just wonder whether all the attention MLPS are getting is going to become problematic before too long. Meanwhile the tailwinds are blowing. And we can add nat gas prices to those tailwinds as we have been rallying pretty nicely. Nat gas numbers are due out at 10:30am.

Barclay's this morning is starting coverage on Energy Transfer Equity (ETE) at an overweight. The stock is sitting at a 52 week high this morning. Not much else on the tape. Bonds are a touch lower and crude oil is higher which reminds me to call my heating oil man to top my tank. We had another 2 inches of snow overnight which makes for a nice look outside. Its spring. We've had 60 inches of snow this season which double the normal. Enough already!

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