BOTTOM OR BREAKDOWN?

The question posed in the headline can be applied to both charts but more so on dow chart below then the MLP chart above. MLPs as we know have held up much better than the overall market probably due to rates that continue to drop to record lows leaving yield spreads at elevated levels. However no such support exists for the Dow Industrials or the S&P 500 which are both sitting on their August lows this morning pre open.


The market is making an attempt to hold this morning with higher futures but the rally is very tenuous at best since Europe did nothing over the weekend to resolve any of its many issues. And if markets break below support decisively today, we could see a mad dash for the exits. I would have rather come in to futures down 2 or 3 hundred points and head toward capitualtion. It appears we are going to put that event off at least for the open. My guess is that after the higher open the tape weakens pretty rapidly.

MLPS don't have much to go on this morning. We do have earnings on Ferrellgas (FGP) which probably won't do anything to drive either the group or the stock. No other news and no upgrades or downgrades. The market opened higher as advertised. MLPS open fractionally higher as well. Gold is down. the Euro is holding for now. Another rollercoaster ride ahead for us today.