COAL MLPS ON FIRE

Coal has been the buzz word in MLP land lately as the 2 mlp proxies that have worked the best are Alliance Resource Partenrs (ARLP) and Natural Resource Partners (NRP) which are on the 52 week high list and have rip roaring chart patterns.

Alliance Resource Partners (ARLP) was up over 3 points yesterday on no news other than the fact that coal stocks were up sharply across the board. The momentum continues but just be careful as the pullbacks can be sharp and painful when they happen.

And yesterday was an intersting day for the whole group as the overall market was under pressure from the financials...big energy was flat...and mlps were up nearly 1%. So we had a strong day of relative outperformance. For you unbelievers out there it can happen. Again notice that MLP chart seems to be moving in line with the breakout in the 10 year as rates rise.





All of this is dollar linked and the UUP is the Powershares Dollar Bullish and here we have a bottom forming and trying to breakout of its base. All of this is linked an i am inclined to have a bullish view for MLPS (more than usual) going into the summer. Barring a complete market collapse or a complete collapse in energy stocks (not necessarily the commodities)..i think we may get some nice relative outperformance in here. It might be considered a counter intuitive move in view of rising rates.

No corporate headlines this morning and so far no upgrades or downgrades. Watch Constellation Partners (CEP) as a move above 22 on volume could take us higher to the mid 20s rather quickly. Watching carefully.