Yesterday had us on the edge of the abyss but with some overnight and morning headlines that are not bad, the markets are taking a breather this morning and we are seeing a bounce of 130 points. The italian bond auction attracted some buyers with yields over 7 percent and we are seeing those high yields come off the highs. But Europe remains front and center and if those yields start to rally again later today, you can watch the stock markets start to come off these highs. The strength of yesterday's selloff will be measured by where we close today. If they can't hold the bounce or add to it, then the market may be telling us that we have serious trouble ahead.
MLPS made a fast move down to support so we are at a critical juncture here for the group. MLPS have been soft all week and did not go on to new recovery highs in the rally. And one needs to remember that if we begin to see real stress develope in the lending system, you might see that stress show up on the MLP chart first. We need to watch this development carefully.\
Earnings this morning from Suburban Propane (SPH) which missed by a penny. No press release yet. Citigroup puts a buy rating on Genesis LP (GEL). And that's it as far as important headlines go. So its back to Euro watch as the markets trade tick for tick there. And we are all Italian bond trades until further notice.