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Thursday, June 02, 2011


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!

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