We seem to be on the edge of something big again, one way or the other. The tape feels very weak as we had rally attempts earlier which faded. So for now anyway, the sellers have gotten the upper hand. The Euro is right near 1.35 which is down .0118 cents today. The euro bond markets continue to see rates spiking higher with Italy back over 7%, Spain is well over 6, and France is seeing its spread to Germany blow out to all time highs. The contagion is spreading and markets are going to reach a point where patience comes to an end. I think the last leg that is holding the markets up is this belief that the ECB will be the lender of last resort. The ECB and Germany have said this will not happen. We shall see but i think we are at a place where its going to determine whether we go racing down to the lows of October..or head for the highs of last May.
MLP are down 2 points on the index today but they were up 3 points yesteday on a day the market lost ground. There is action today in one mlp that is down 2.33 as of this post and that is Inergy (NRGY) which put up earnings and guidance which were not helpful. Volumes dropped in a soft propane market.
The stock has been in a strong downtrend for months now and while the lows were made back in early October, the bounce back has been rather anemic. One wonders whether the distribution might be in trouble come next quarter. If that low gets taken out, then the market may be telling you something.
Lunch time with the dow down 40 and off the lows. Nasdaq is flat and the MLP index is off a little less than 2. The tape could go either way this afternoon.