Quite a turnaround for nat gas which was down 2% and after inventory numbers is up 2%!

Market at the highs of the day. MLPS still doing nothing.

Maybe the end of quarter rush into mlps happened yesterday as the stocks are flat right now. The dow is up 150 as qe2 ends. Most mlps are moving small fractions in either direciton of unchanged. Energy stocks however are strong today as portfolios scramble to have them on their books.

Nothing noteworthy in terms of individual moves so far today.

END OF QUARTER, UP 7 IN A ROW!

MLPS are heading into quarter and 1/2 end on a strong note. Up over 4 points yesterday we are now back above support and over 370 which btw puts mlps up on the year although we are down for the quarter. There is a firm tone to trading this morning as the market has firmed up nicely these last few days. Bond rates have also firmed up as we are up 20 basis points off the lows of last week and today is the last day of the feds buy program. So we will see what happens as bond markets deal with the fact that there is no longer going to be a sugar daddy out there buying up supply. This all comes ahead of a holiday weekend so look for trading to start to slow to a crawl especially tomorrow as some people plan for an early getaway.

No news of consequence today. Wunderlich is starting coverage of Linn Energy(LINE) at a buy and a 44 dollar price target. Oil is up and nat gas is down this morning. Nat gas stocks come out at 10:30am. Long rates are higher again this morning. Overseas markets are higher for the most part. The dollar is down against the euro.

END OF QUARTER PRESSURES LOOM!

Half the year is just about over and the resulting trades are usually wide in both directions. MLPS closed up a little over 1 point on the index yesterday and off both the highs and the lows of the day. The dow pulled back in the last 30 minutes from plus 150 to plus 108. Interest rates (interestingly enough) closed at their highs of the day for the second day in a row. The 10 year is still under 3 but i wonder if the action is beginning to refect the end of QE2. World attention is focused on the Greek vote tomorrow morning at 5am when they will pass the austerity plan and the resulting chaos from the espresso crowd.

We have a secondary offering this morning of 7 million shares from Enbridge Energy Partners (EEP). The stock is down 1.16 as of this post. And UBS raises Spectra Energy Partners (SEP) to buy from neutral. The stock has been a chronic underperformer. No other news or upgrades/downgrades this morning. Stock futures are higher ahead of the open. Crude and nat gas are also rallying. Nat gas may be keeping an eye on action in the Gulf of Mexico though if something developes its already pretty far west to have any serious impact on Gulf rigs.

MERGER BATTLES, NAT GAS, AND MORE!

While markets sold off Friday we had mlps showing strength into the weekend. So now the new week begins and charts are at tenious places that need careful watching. The dow chart is trying to hold above the bottom of the range and has actually been showing some signs of a bottom. But each day has been a battle and add to that the end of month,quarter, and half year pressures and you have the mix for nothing but confusion.

And while the dow chart has been doing one thing the mlp chart has been doing something else in the last few days.
350 is holding and the last few days we have seen early day selloffs followed by closes near the highs of the day. All of this is coming as crude continues to fall and looking to break decisively below 90 dollars. Nat gas meanwhile has been holding its own as it has come back down to its recent bottom and we may see an attempt to rally off that today. Nat gas is flat at the moment.
So lets mix all of this together and add to that the Greek mess as they teter on the edge of default and the result is stock futures which are sitting at...unchanged!!!!

The NY Times is attempting to do a business story about the viability of shale and natural gas. The result is nat gas stocks which are mixed pre open. Not sure what their point is. There really isn't anything new here and the piece fails to address the fact that this administration is hostile to energy developement unless it comes from a windmill. Judging by some of the pre market action (or non action) in nat gas and nat gas stocks..there isn't much that we don't already know.

The battle for Southern Union (SUG) heats up with Energy Transfer (ETE) making moves to block Williams (WPZ) from succeeding with their higher bid. Williams as it turns out bid 30 bucks for Southern Union earlier in the year. All participants will be active today. Genesis (GEL) is buying assets from Florida Marine Transporters. No news link available yet. Genesis says this will add to cash flow going foward.

Stock futures are flat for the most part as rates on the far end of the curve tick up while the 10 year is holding at 2.86%. The dollar is a little higher and euro markets are now a little lower. Crude is barely holding 90 bucks and metals are a little lower.

One mlp to keep an eye on in my view is Nustar (NS) as it has been behaving better lately.
After hitting 58 in the pullback to 350 it seems to be wanting to hold up in here as it closed Friday near 64. Not sure if anything is going on here but since it has been been an underperformer for much of the mlp rally, perhaps it is sending us some sort of a signal. No guarantees folks but lets watch to see if it can get above the moving averages.

THE BOTTOM HOLDS!

Yesterday's action from a technical standpoint was very impressive. After being down 200 the dow came back while Nasdaq rallied 17 points higher. And MLPS were a particular standout being down over 6 and coming all the way back to the flat line plus a few ticks. Still the mlp index remains under the moving averages.
This all comes after the stupidity of the IEA releasing oil from the Stragetic Petro Reserve with the sole purpose of getting President Obama re-elected. Okay yes i said it. It was all politics. Why would you release the oil when crude was already dropping at 95 and not release it when oil was 148 in 2008? All this oil gives us a short term goose in the price but anyone want to take the side of the trade that oil will be lower in price 6 months from now? And all that oil sold at 90 is going have to be bought back one day. Any bets that it will be bought back at a higher price than it is today?

News this morning on the battle for Southern Union (SU) as Williams Partners (WPZ) is offering an all cash offer for Southern Union which tops the offer from Energy Transfer Equity (ETE). Lots of news stories on this so i put it all on one page for you to access. SU is up 5 bucks
ahead of the open. Not often we get to see battles like this in the MLP group. No other news and no upgrades or downgrades.

Stock futures are a little higher this morning. Crude has just gone from lower to flat and nat gas is a few ticks higher. Rates remain under critical levels; under 3% on the 10 year. The dollar is flat to a few ticks lower on the Euro.

MLPS are having a pretty good day considering, down over 6 on the index but now down less than 2 as energy stocks get hammered as a whole. The yield attraction is just too overwhelming with the 10 year under 3%. Buckeye Partners (BPL) and Holly Partners (HEP) are the 2 notable winners in here though most mlps are off their lows of the day.

Crude and nat gas are off their lows as well as 2pm approaches.

MLPS down nearly 5 points on the index in early trading with the dow down 160.

SO MUCH FOR A RALLY!

I guess it should be no surprise that the fed said yesterday that things are not very good out there. So the market started selling off late yesterday and overnight. Now we have subdued jobless claims and crude down almost 4 dollars and markets are taking gas. Futures are sharply lower and MLPS at least at the open will follow suit. That open looms in minutes.

No news and no upgrades or downgrades for mlps this morning. The dollar is up. Rates are flirting with all time lows on the 2 year. 2.90 on the 10 and 4.15 on the 30 year is not a strong endorsement of a booming economy. The dollar is rallying on all this so it looks like its a downward thrust at the open and then we'll see what happens.

Nat gas was down but is now even on the day as nat gas numbers are due out at 10:30am.

Up 1.65 and holding on the mlp index and 363 and change. Dow and S&P off a little ahead of the fed. Most mlps are moving fractions with an upside bias. Regency Partners (RGNC) and Energy Transfer Equity (ETE) are up a touch on their news this morning as they continue to expand their relationship.

Waiting for the fed and Bernake to say what we all probably already know.

HAS THE CORRECTION ENDED?

There was a lot of buzz yesterday over the solid tape action and the idea that maybe the dow correction that began at 12,800 has ended at 11,900. I have to admit that the action over the last few days with the Greek tragedy as the backdrop looks rather impressive. The dow chart certainly has the feel of a trading bottom but lets clear the moving averages and get back above them before we sound the all clear signal. Still based on the feel of the tape, the odds that the corrrection is over seem pretty good.

Which leads me now to the nat gas chart. Notice we seem to be in this mode of higher lows and higher highs with each of these recent mini legs and we may have seen another low at 10.95 on Monday. So if that is the case the next leg up could mean a ride to 12.80 on the UNG chart or perhaps 5.00 on the cash nat gas market. This is all happening by the way in the context of longer term bottom that seems to be forming here.



Meanwhile MLPS did very well yesterday with a 6 point plus gain and we are right at the moving averages so the next challenge is to get above 367 on volume. 350 appears to be the bottom of the range. As long as we dont hear anything out of left field about taxation, we should be moving in line with the overall tape.

Corporate developements this morning from Regency Partners (RGNC) and Energy Transfer (ETE) as they continue to expand their relationship. You have to wonder if ETE may one day swallow up RGNC but they have to close the deal on Southern Union first. No other news and no upgrades or downgrades so far.

Stock futures are a little lower after the Greeks once again kick the can down the road. Fed speak later today will be watched for any changes in verb/noun/adjective/adverb placements in the statement. The dollar is a little higher , rates a little lower, and later this morning we get oil inventory numbers which always move the markets.

Seeking Alpha has a piece on 3 mlps and it mentions Constellation Energy Partners (CEP) as a speculative play. CEP is the last mlp to remain in "penny stock land (under 5 bucks) although it trades on the AMEX. No distribution is in sight but if the company is doing the right things to get there one day then it might be worth the play. But it is not for the faint of heart by any means.

MLPS UP 5 POINTS AS MARKETS RALLY!

Yesterday it looked like the market simply ran out of sellers as they tried several times to take em down. The last hour saw a nice rally and MLPS closed up 2 and change and that has been extended today. MLPS are up nearly 5 on the index and near the highs of the day. In spite of all sorts of uncertainties like Greece and the fed etc etc..markets are responding by running higher. The dow is up just under 100 points and the broad market is strong.

EV Partners (EVEP) Oneok (OKS) Williams (WPZ) and Alliance Resource (ARLP) are showing solid 1 point plus gains and most mlps are ahead by major fractions. Just a few issues on the tape shedding pennies for the most part.

Tax issues are front and center among the uncertainties and Politico tells us that the door may be open for more tax reform. Worth the read here. No mention of MLPS specifically but one doesn't have to read between the lines.

No news drivers but EV Partners (EVEP) is down 1.20 after being off nearly 2. It is the biggest loser of the day. The mlp index is trading in a tight range up a few ticks as energy stocks are a little lower and markets as a whole are a touch higher. It feels so far like a watch your paint dry kind of day.

Took a stake in UNL which proxies nat gas at 32.57 today. Im hoping nat gas is approaching another tradable bottom in here.

CRUDE AND NAT GAS START LOWER!

Energy is selling off pre open which should extend into the market open this morning. That and a softer tape probably means the same for MLPS which are going to open down and probably test that 350 level fairly quickly.



The mlp chart above is looking rather dicey to me and if we decisively break through that 350 level we could head down to 335 in a hurry and maybe as low as 320. Meanwhile the chart above the chart above is the nat gas chart which continues building this long complex bottom. The last trip up i thought surely it would break out to new highs and, once again, it turned back down toward the lower end of the range. $4.00 has held as the bottom recently so i will be looking when it gets there (if it gets there).

Back to mlps there are headwinds for sure and not the least of which was the passing by the Senate ending the ethanol subsidy. To repeat what i posted when it happened, if they can pass this they may pass other things including taxing mlps. Now passing and becoming law are 2 different things and a tax change has to come from the House of Reps which means odds are pretty low that this will happen. Still it gives one pause and the action is to shoot first and ask questions later.

This morning on the corporate side its typical end of quarter action. No news and no upgrades or downgrades that we can see. Stock futures are a little lower and the dollar is higher against the euro. Rates are flirting with all time lows again. Crude is down over a dollar and approaching 90 bucks while nat gas is a couple of cents lower.

After opening nearly 2 points higher the mlp index is now lower on the day. Energy stocks have suddenly lost most of their gains and the dow has pulled back from its highs of the day.Sunoco Logistics (SXL) is down nearly a point as the biggest loser of the day.

REELING FROM THE ETHANOL VOTE

While markets stablized and closed a little higher yesterday MLPS began selling off yesterday afternoon and finished at the lows of the day. The sell off i believe can be directly linked to the Senate vote to kill the ethanol subsidy. Now you may ask why is this important? Well the perception in my view is that this was considered untouchable. And if the Senate is willing to stand up against the farm lobby and get rid of this, whats to stop them from doing the same to the MLP tax structure? Now granted the 2 are not the same but in nervous markets its sell first and ask questions later. There is more here from the Hill and note in this piece that it focuses on niche subsidies. If they can take away credits on the tax side, they can do much more. Although going after the partnership structure means going after lawyers which makes the prospect of tax changes here rather dim. Still the symbolism is enough to get sellers to give up their shares.

Meanwhile stock futures this morning are sharply higher as word comes from Euroland that they are going to (once again) kick the Greek debt can down the road. MLPS will probably open higher but i wonder just how much of a rally we will be able to muster. One big winner yesterday was Energy Transfer Equity (ETE) which was up over 4 dollars on its purchase of Southern Union making the largest nat gas pipeline system in the US. The purchase highlights the sea change in nat gas where places that used to import nat gas are now exporting it. And of course we have an energy policy that is focusing on developing wind while we have more nat gas then we know what to do with. This is of course another wonderful accomplishment of the Obama Administration and their ridiculous energy policy.

There are no other corporate news items this morning and no upgrades or downgrades. Crude oil is down another dolalr after a big hit of 4 bucks yesterday. Nat gas was down yesteday and its a little lower today. Interest rates are higher as the flight to quality trade from the Greek mess gets unwound. Im looking for mlps to open higher with the tape and then we will watch to see if sellers overwhelm.

Down nearly 5 points on the mlp index with the dow down 180. Crude is down over 4 dollars but nat gas is unchanged on the day as the dollar strengthens. I guess a stronger dollar gives more value to nat gas? Grasping at straws here people.

MARKETS SHARPLY LOWER, MLPS ALSO LOWER!

After a down open and a feeble rally attempt we are seeing markets tanking. The dow is down nearly 180. MLPS are down over 3 on the mlp index as they follow along and energy stocks are taking it on the chin as well. Attention is on Greece and defaults and riots and anything else you can think of. Economic numbers today were not especially good. There was even a little inflation in the CPI numbers even after you strip all the inflation out!

There is some mlp rebalancing going on and that has some mlps taking larger than normal hits like Holly Partners (HEP) which is down 2 and change. Crestwood Energy (CMLP) is going into the index so holders of the ETF's and ETN's have to buy. Crestwood is up a dollar. Otherwise we're seeing a slew of 1 point plus losers in Alliance Resource (ARLP), Sunoco Logistics (SXL) and TC Pipelines. Breitburn (BBEP) is down 1 and change on a stock offering. Quicksilver (KWK) owns 15 million shares and they are selling 7 million. The rest of the list is showing lots of losers shedding major fractions.

Copano(CPNO) is actually up one cent as it is continuing to expand their relationship with Kinder Morgan (KMP). Kinder is down just 19 cents right now.

Crude oil was down, then up on inventory numbers, and then took a big hit after 11am after the dollar rallied big. Crude is down 2 bucks. Nat gas is a little lower but off its lows. The afternoon trading looks shaky so the last hour could be interesting.

KINDER MORGAN OFFERING
AS MLPS OPEN HIGHER!

After yesterday's losses we start the day higher in mlp land by 1 point on the index as the dow is up over 100 points. MLPS are being dragged down by Kinder Morgan selling another 6 million plus shares in a secondary which has the stock down 1.50. The market is benefitting from a rally that started last night after China's inflation numbers came out and then getting another boost with retail sales which were better than forecast.

UBS is on the tape this morning as it downgrades Inergy LP (NRGY) to neutral and it cuts its targets on Boardwalk (BWP) and PAA Natural Gas Storage (PNG). It is raising Ferrellgas (FGP) to neutral from sell and is raising Amerigas (APU) to buy from neutral. All these moves has all the stocks mentioned up by fractions so far this morning. Alliance Resource Partners (ARLP) leads the winners list up $1.84 while many other mlps are up major fractions. No other corporate developments so far today.

Crude is a little higher now after being lower earlier and nat gas is much lower again as the selling continues in the energy complex.

Crude oil and natural gas are selling off hard today with energy stocks following and mlps are down 3 points on the index. This pretty much evens out Friday's divergence where the market was down 170 but mlps were up 2. Williams (WPZ) Sunoco Logistics (SXL) Alliance Resource (ARLP) and EV Partners (EVEP) are all down a point or more. Markwest (MWE) and Atlas LP (ATLS) are down 1 point each as well.

Markets overall are hanging on to small gains as we head into the critical last hour.

MLPS SEEKING DIRECTION!

Monday morning brings us some firmness in markets pre-open and mlps had a nice finish last Friday with a 2 point gain..while the dow was down 170+ points. I don't think it changes the short term downtrends we're in but it was an interesting divergence. I think MLPS benefitied from the move higher Friday in natural gas and that has put a tail wind behind many nat gas mlps.



The dow chart looks like it wants to head down to 11,700 which takes us back to the March low and if that doesn't hold perhaps we need to head back to the November low of last year which is down around 11,000. All the focus seems to be on the weak (ening) economy which is driving prices lower so until we see evidence of something different, the path of least resistence is down. For mlps there seems to be some relative strength here short term so we will watch to see if the gains of late last week get undone. 350 is still the magical place.

No corporate news this morning on the tape and no upgrades or downgrades. Oil and nat gas are lower ahead of the open while stocks and interest rates start a little higher.

By the way i turned on the settings for mobile devices so you can now look at this blog on a mobile device in a clean why. Let me know how it looks.

Markets are selling off but MLPS are responding to low (and dropping) interest rates and the index is up a point. The list is pretty much mixed with mlps in a range of plus 50 cents to minus 50 cents. No real standouts in either direction. The dow is down 154 and under 12,000 which takes us back to the idea of going down to 11,700 for a bottom test.

NICE BOUNCE YESTERDAY BUT
THE WEEKEND LOOMS!

Yesterday was a very good day for MLPS which closed at the high of the day, up nearly 6 points on the index. It takes us to 360 but it appears that it was nothing but a one day bounce as markets look soft today. All this focus on the weekly performance with markets down 5 weeks in a row led me to put up the weekly mlp chart. The uptrend is still okay but the uptrend line is getting some penetration. As far as the long term trend is concerned we can go all the way down to 320 and still be okay in the long term uptrend. We haven't even come close to the 89 day moving average since May of 2010. Short term the magic breakdown place remains the 350 level.

Nothing exciting on the newsfront this morning. No corporate headlines and no upgrades or downgrades so far this morning. Stock futures are at the lows of the morning and we have crude down over a dollar but nat gas is up a few pennies. Interest rates continue to test the lows of the year..4.18% on the 30 year and 2.95% on the 10 year.

We should say happy birthday to the MLP index which is 5 years old! And of course tomorrow is the Belmont Stakes and im thinking to jump on a new horse for the race. I have my radar on Master of Hounds. Nehro was my Derby pick but after 3 straight second place finishes i wonder if he has the heart to win. Shackleford could be very tough if he gets loose on the lead and can run the race in 25 second quarters. The track should be fast as long as rains hold off. Animal Kingdom is the horse to beat and should love the extra distance. So maybe at 10 to 1 Master of Hounds might be worth a play. No final decision made yet.

After running up 2 points plus the mlp index is now down nearly 2 and at the lows of the day. Rallies continue to be sold into at every opportunity and it looks like were on our way to 6 down days in a row. The dow was is off a few points as we head into lunch with some strength in energy stocks still holding on.

Constellation Energy Partners (CEP) is one of the few mlps not to recover off its 2008-09 massacre low thanks to no prospects of a distribution coming back but the news of debt reduction has this one up 15 cents or 6% on the day and among the few winners. Oneok LP (OKS) is up also on the news of a 2 for 1 split. Otherwise its down for most of the group with TC Pipelines (TCLP) down a dollar as the biggest loser.

DOWN FIVE IN A ROW..WILL THIS MAKE SIX?

Markets continue to be in corrective mode and yesterday was the 5th day of losses for both the dow industrials and the mlp index. Both are below support and in short term downtrends but the mlp index is just 5 points above more meaningful support which for me has been the 350 level. And we could get there fairly fast if selling today begins to get serious. The 350 level btw takes us back to where we were in mid December so as of this morning, mlps are down about 3% for 2011 excluding 2 payouts which would put us at around breakeven plus or minus a few ticks.

The chart has not looked good since the top at 390 and rally attempts have been feeble at best. The actual day of the top came with news about possible taxation of mlps and we have been fighting a losing battle since that uncertainty has come into play. The overall market is being fed by nervousness over economic weakness that has shown up lately (shocked) but so far its been just that and not some fear of another recession.

So we begin the morning with soft stock futures and lower rates ahead of another fed auction. Oil and nat gas are lower this morning ahead of oil inventory numbers. In mlp land there is no corporate news to speak of and no upgrades or downgrades. Energy stocks as a whole are lower this morning as well.

Down day again for mlps but a 2 for 1 unit split is coming for ????????

INDEX DOWN BUT MLPS MIXED!

The tape is a little deceptive today as Enterprise Products Partners (EPD) is down about 80 cents and is acting as a big drag on the mlp index which is down about 50 cents as of this post. Most mlps are actually either flat or higher on the day with Alliance Resource (ARLP) Nustar (NS) Exterran (EXLP) and Williams Partners (WPZ) leading the leaders list all up 50 cents or better. EV Partners (EVEP) Oneok (OKS) and Buckeye (BPL) among the more noteable losers. Ferrellgas (FGP) is the biggest loser of the day down 1.80 on earnings which i guess were not to the liking of some. BTW Nustar (NS) may be up as the big boss has made some insider purchases at the market.

The dow is up 70 points right now with yields a little higher. Nat gas is flat at the moment and oil is down a little on crude, though energy stocks are higher on the day.

MLP index down 4 and at the lows of the day and well below 360.

The mlp index is down nearly 2 points in the early going. Holly Partners (HEP), EV Partners (EVEP) and Oneok (OKS) are leading the way down as these three are off major fractions. On the upside we have Calumet Specialty Products (CLMT) up 70 cents. No news that i can see. Constellation Energy Partners (CEP) is a big percentage gainer up 24 cents as the company continues to reduce debt.

Nat gas is up over 2% so far today. Energy stocks as a whole are down.

THE CORRECTION CONTINUES!

It took a little longer for the dow industrial average chart to break below support but after Friday's action it seems clear that we are headed lower in the intermediate term. The ending of QE2 seems to be having some impact and that perhaps the period of the levitation of asset prices appears to be ending for the time being.

However as one market tops it appears another one has (finally?) bottomed. Natural gas has been in base building mode for eight months and we are now moving back to the top of that range. Im using UNG as a proxy here for nat gas (though not a perfect one i admit) and this base looks to be the makings of an important longer term bottom in nat gas. Certainly we appear to be moving to the top of the range (12.70 for UNG..5 dollars for cash nat gas). Perhaps the notion of high energy prices in the crude complex is finally drawing attention to nat gas which remains extremely cheap and we have plenty of. And apparently according to Salon Magazine on line, everything we have learned about fossil fuels is wrong! Then of course we have the I.E.A saying that nat gas could be entering a golden age but its still a fossil fuel and we need to focus on alternatives. Good luck getting alternatives to lower the cost of energy; not when solar costs 22 cents to produce a kilowatt hour of energy while coal costs 6 cents.



MLPS closed down Friday but off the intraday low under 360. 350 remains the magical place in my view as to whether we are still in bull or bear mode. Or maybe we are entering a longer term trading range between 350 and 390.





This morning so far we have no news and no upgrades or downgrades so far. BTW back to nat gas, keep an eye on this weather system in the Carribbean because that could provide an impact short term on nat gas prices. Nat gas is 3% higher pre open. Stock futures are a little lower. Crude is down a buck at 99 dollars a barrel and interest rates are moving higher this morning with the 10 year back at 3%.

Off the lows and the markets are taking a stand in here. Rates are rallying sharply higher which is a good thing to see unless its because of the Moody's sillyness. The mlp index was down 3 but is now down less than 1. Dow is down just 30 points as of this post.

MLPS CONTINUE LOWER!

After yesterday's 4 point loss on the MLP index and the dow down nearly 280 points we see follow-through selling today which i suppose is no surprise really as we are in corrective mode. The index is down another 2 points today and nearing 360 while the dow is down 65 points as of this post.

The sinking moving averages on the mlp chart and the rally back to them was as it turned out a perfect place to get short but you had to be nimble to do it and frankly it isn't even worth it considering how il-liquid the MLPS short ETN is. The break below 3% on the 10 year is probably helping to hold up yield stocks but the 350 level is where we again need to watch for any indication of a serious breakdown.
The dow chart is at a critical place right now as it tests the rising uptrend lines on its moving averages. So watch the afternoon trade and the close very carefully. If we break down than we could visit 11,700 in a big hurry.

Regency Partners (RGNC) and Energy Transfer Equity (ETE) continue to expand their relationship and both stocks are up today in a weak mlp group. Baird ups Inergy LP to outperform and its also up about 20 cents. Otherwise most mlps are down major fractions.

Nat gas is ripping higher by 3%+ and 5 bucks is not out of the question here. It looks like we are going to test the top of the range there. The strength here has been solid in the last week or so. Maybe its Hurricane Season!

MORE STOCK OFFERINGS!

Relatively high equity prices for MLPS continue to drive some of them to the money tree and sell shares. This morning we see stock offerings on the tape from Inergy LP (NRGY) which is down 1.44 pre open. And we have shares being sold by Cheniere (LNG) which has had a nice run lately and now sells for double digits. In fact Cheniere raised the number shares as demand has been good and they priced it at 10.35. The stock is at 10.75 right now.

The mlp index managed a gain yesterday and we touched the 34 day moving average in the first half hour yesterday before pulling back.




Now comes the real test as to what happens from here. Is this the beginning of the long awaited meaningful correction? It will be a day to day battle to figure out the answer to this question. But i will say that its not a good sign that the overall market has held up quite well above support as mlps seem to be struggling here to make new highs. Of course we've had a terrific 3 year run. And if mlps are signaling a top in interest rates someone needs to tell the yield market as the 10 year today hits 3% and as of this post is looking to break under it.

No other news of consequence this morning and no upgrades or downgrades as the market heads in to the open under a little selling pressure.