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.