THE MEOW YOU HEAR IS A DEAD CAT BOUNCE!

The selling over the last couple of weeks has taken us back to the beginning of the year on the mlp index but i suppose that after breaking 350 yesterday, buyers could not resist and we are seeing a 7.50 gain here at lunch time. Large gains across the board like EV Partners (EVEP) which is up over 3 points and Alliance Resource (ARLP) which is up nearly 2. The gains are noteworthy but have broken the uptrend and now the test will be on this bounce to see how high we can go. What was support is now resistence and you can see the moving average lines are up around 370 or so. We will see what happens when we get there but for now i am of the opinion that rallies should be sold.

Seeking Alpha had an interesting piece on the mlp correction, what it means and what it doesn't mean. This writer has been calling for a big pullback and argues that this is not it! The correction has only brought yield spreads to the low end of the normal range and it has been helped by long rates dropping about 50 basis points in the last couple of months.

Crude is higher on inventories and energy stocks are taking it as another tailwind today as they bounce as well.