THE VIEW FROM THE DIVING BOARD!

I suppose if i had to be a chart i would rather be the MLP chart above rather than the dow chart below. Yesterday's action has put us in breakdown mode. Everyone this morning is in a tizzy over the fact that on October 3rd 2008 the S&P closed at 1099.23 which was the close yesterday October 3 2011. The VIX closed yesterday above 45 as it did on 10/3/2008. And the most important coincidence of all? The Yankees lost to Detroit! The outcome in 2008 was the S&P one week later was at 899. Now nothin happens the same way twice but its not impossible that we might see a reasonable facsimile.



MLPS seem to be on a race down to 310-320 where support lies while the dow sees 10000 just below it or around 1050 on the S&P. We could get there in one quick move down and frankly i would love to see a climax selloff develope today to perhaps give us a chance for one of those rip your face off type rallies. Those of you out there with fire power will get the chance to pick up some bargains especially in MLPS. Beware that some of the higher priced mlps could get many points knocked out of them in a big hurry like EV Partners (EVEP) which lost 8 points at one point yesterday before coming back and ending down a little less than 6.

QR Energy (QRE) announces a distribution boost this morning which is nice for its holders but probably won't stop the selling. No other news so far this morning and no upgrades or downgrades. Stock futures pointing to a 15 point down S&P open, dow down about 120. We're off the lows of the morning. Euro markets are a mess. The dollar is up. Crude is down 2 dollars and Gold is lower. We're getting near the point of the big portfolio blowout. Be ready when it comes.