THE MLP RALLY STALLS!

It was a wonderful run for mlps that took the index from 360 to 400 in short order and an upswing of 16 out of 17 days. But 400 has been a wall again and the chart does have the look of a triple top in the making. However notice that I linked these 3 charts as they continue to drive trading so far this summer.

First off MLPS have run higher since the last days of Q4 and I believe it is part of this massive pile on into anything that has attractive yield. Notice also while all this has been happening the Dow Industrials and for that matter all the broader averages have been essentially moving along a trend line which btw is bordered on the bottom by the 200 day moving average (not shown). And all this is going on in the face of the 10 year which broke below its April low of 1.46 and took a trip down to 1.36%, The bond market is clearly screaming deflation and markets may be starting to take notice. MLPS probably were able to sustain this tailwind but it is very disturbing to see all these downside divergences on the tape. Even some defensive stocks are beginning to show some wear. The selling in the last 2 days is probably overdue but we are about a week away from the quarterly ex distribution process. I wonder who is going to be left to buy once that process works its course. Its another 3 months until the next payout.

Sorry for the scant posts lately but work has been heavy with lots of overtime and its hard to sit in front of computer screen and write this blog while you spend 55 to 60 hrs a week in front of another computer screen. See my latest post on Equities.com btw where I've been posting weekly.