SEARCHING FOR A TRADEABLE BOTTOM?

 Just back from a very long weekend dealing with soccer tournaments and speeding cameras in Maryland where apparently its a second source of income by nailing unsuspecting out of towners. So im playing a little bit of catch up as we take a look this morning at the charts to see where we are.

After a couple of months where the mlp index was under performing the markets, it appears that the market and the mlp index are now pretty much in lock step since the beginning of May as they have been going down together. Now we have a move sideways over the last week or so and we have some of the technical indicators telling us that the markets are oversold enough for a tradable bounce. But i believe that any bounce up will probably be capped by the downtrending moving averages which like a few percent above these levels. MLPS are in a world of shrinking margins here along with dropping demand worldwide and a 10 year yield spread above 400 basis points. So we are in one of those areas where caution is advised.

No corporate developments to trade on this morning and no upgrades or downgrades so we will be watching Europe. Spain was down over 5% earlier but has now rallied back to unchanged on the latest European bullshit regarding recapitalizing the banks. Crude is under 90 bucks and Brent is nearing 105. Nat gas is down to 2.42 and could be signalling that the latest rally that started at $1.96 may have run its course. Watch the 360-365 level on the mlp index as the week rolls on.