MLPS LOOKING FOR LEADERSHIP

Yesterday's mlp inde 6 point gain aside the mlp tape has been holding that 350 bottom so far but looking at this chart, the bounce to almost 370 has been pretty much as expected.

The rally back has only taken us to the first decending downtrend line and we will probably hit it this morning. At least we will get to see whether this is a brick wall for the index. I continue to be disturbed over the fact that the group is no longer a market leader and while the dow chart looks a little more positive, mlps continue to signal that there may be something wrong with the overall markets.

With 6% plus yields and a 500 basis point spread against the 10 year why are investors staying away? Is it the overall bear market that has developed in energy stocks as a whole? Crude oil has moved from 110 to 80 bucks in a big hurry. Just as mlps signaled that things were going to improve in 2009, i think mlps are telling us that things are going to get worse over the coming months.

This morning we see markets flat ahead of the fed which may be a market mover if they don't give markets the QE3 heroin. Crude this morning is down a little while nat gas continues its rally which has been impressive but for now, still looks like a bear market rally.