MLPS STILL HOLDING UP WELL!

Make no mistake. MLPS continue to hold up so much better than the overall market and we are coming into another round of payouts in about 6 weeks. You can hold a 10 year for a year and get 1.9% or you can hold an mlp for 6 weeks and get the same 1.9%! Of course there is price risk and if the already leaking dam really breaks, you can expect mlps to take a drop down to that 320 intra day low set back in August. Meanwhile the overall market has moved to the bottom of the recent range and has done so in a big hurry.


1120 has held and while markets could bounce off that level in a hurry, ultimately i think its going to go as i've been arguing for quite awhile. The VIX is a couple of ticks under 43 and the August high there is around 48. Nothing has really changed over the weekend on the overall market picture. The US economy is teetering, Europe is burning, and Greece is deciding what time espressos will be served today even though there is no money to pay for them..but what the hell.

Targa Natural Resources (NGLS) continues on the road to expansion as they make 2 strategic purchases. Calumet (CLMT) is also making some asset purchases from Murphy Oil. Seeking Alpha has a piece on Calumet on its distribution and whether its sustainable. No other news and no upgrades or downgrades.

Elsewhere gold and silver are up. Euro markets are down 1 to 2 percent. Stock futures here are down about 70 dow points. The dollar is up against the Euro. My guess is that markets are going to wait for the ECB which will do nothing with rates this week and that might be the event that sends markets cascading lower.