DECEPTIVE RALLY COVERS UP WEAKNESS!

About the only thing that is up this morning is the dow industrial average which is still hanging on to a 46 point gain but everything else is selling off and Nasdaq in particular has an almost 1% loss as recent leaders like Apple and Google take big hits. Meantime i thought it might be a good idea to see if there has been any damage done to point and figure charts concerning mlps and a few other things.

Some bearish signals have been thrown by these charts. Kinder Morgan (KMP) went bearish weeks ago and the charts have a price target of 71. Note that the index itself continues to show a bullish target of 492 while bearish signals are evident. Stocks like Oneok (OKS) and PAA (PAA) continue to show bullish price targets of 100 and 112 respectively (a little hopeful perhaps) so at best lets say its a mixed picture here. Still we continue to pay attention to the mlp index and the 380 level which is wear the 200 day sits and for now continues to hold.

The index this morning is down nearly 2. Citigroup is cutting price targets on Alliance Resource (ARLP). Note to citigroup...the market sort of did that for you in the last few weeks with the stock going from 80 to 50 in a big hurry. It has rallied back to 57 on a dead cat bounce. Not much else happening this morning. No other corporate news of consequence and nat gas continues to explore the price areas under 2 dollars. The point and figure chart has a 1.50 price target for nat gas.

We'll see what afternoon trading brings but given the divergences in the tape and the nasdaq weakness, i would guess sellers will take the upper hand later on today.