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Thursday, March 03, 2011


For all the action in the markets in the last 2 weeks we've really haven't seen much selling when you really look at it. In fact energy stocks have done quite well since oil broke out above 90 bucks. And its important to "read the tape" to get a feeling of what the market is telling us. Frankly its saying that at least for now 100 buck oil and 3.60 gasoline is not a problem for the economy. And if it were, the markets would been going down in anticipation for the last few months and not melting up.

MLPS have been just moving right along here and of course we could be at new all time highs pretty much on any trading day. There has really been no significant pullbacks other than to the rising supporting moving averages. MLPs have handled the rise in interest rates very well.
Of course there is a point where rising rates will be a problem for MLPS but we obviously aren't there yet. I have frankly given up on figuring out where that is. The obvious places are 4% on the 10 year and 5% on the 30 year, or perhaps if we get into some sort of situation where rates spike significantly higher over a very short period of time; perhaps enduced by bond market vigilantees who finally march to attack but so far they remain in their tents. Still you have to ask yourself whether the generals are massing the troops for an assault of some kind.

This morning is seeing some buying in a rally that began last night as oil has come off its highs and is down a dollar. Stock futures pointing to an 80 point up open on the dow industrials. Interest rates held 4.50% on the 30 year and we may be starting a ride up to 4.80% which is the recent high. Nat gas is just a complete waste of time even bothering with and with inventory numbers out at 10:30am; it might be the catylist for a major breakdown. The bear market there shows no signs of ending. Jobless claims dropped and stock futures have just gotten another goose higher. No news of consequence in MLP land this morning....whoops...we have something here.. earnings from Genesis Energy (GEL). Earnings usually don't move mlps much since they have a great way of pricing in performance. The 30 year is up to 4.60% as i type.

Looks like a good start to the day!

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