THE DAY AFTER DOW DOWN 500!

The employment numbers this morning came in a little better than forecast and markets have initially responded by rallying strongly however judging by the tape action in the pre market, it doesn't look good. Stocks are well off the highs of the morning and bonds have now turned higher after spiking up on rates. My guess here is that we are heading to 2% on the 10 year which would put in a double bottom with the 2008 low. But to drop another 40 basis points probably comes with losing another 1000 or so dow points. MLPS capitualted yesterday and closed under 350 which i have been pointing to as an important level. 320 probably is a logical place to go if the sell off continues. Its very important that markets rally today which it is entitled to after yesterday and the action of the last few weeks.

Buckeye Partners (BPL) announced earnings last night which were good and they up the distribution. Crosstex Energy (XTEX,XTXI) which has been a good performer before the last 2 weeks puts up earnings and Constellation Energy Partners (CEP) announces earnings and the company says improvement continues though there is no distribution coming back in 2011. They are however pointing to possibilities for 2012.

Fasten your seatbelts for another rough ride today.