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Thursday, November 13, 2008


Two powerful technical formations appeared yesterday as we indicated yesterday afternoon that the market looked and felt like it was staging a powerful reversal and by days end we finished up nearly 60 points on the S&P.

As usually in past reversals MLPS lagged but they usually play catch up the next day and i would expect to see upside today. Divergences are showing up in relative strength on both charts and it seems we could have a tradeable bottom in here and that an intermediate term rally could be at hand...and that could carry for a few months.

Of course we've been down this road before and the markets have ignored past divergences as we made lower lows. So it is in prove it to me mode but i am gaining some optimism here. But make no mistake the road ahead will continue to remain difficult.

There was some interesting news from Eagle Rock Energy Partners (CEP) which has a 7 handle. At least someone sees some value in here. Earnings this morning from Suburban Propane (SPH) where the company says they are in a position of financial strength given the present market conditions.

Please note that Yahoo for some reason has the payout dates for many mlps as Novemeber 13th which was yesterday when in reality its November 14th...which is today. So don't get nervous if you don't see the cash in your account. It arrives today.

Stock futures are off the lows this morning and crude has turned higher by a quarter. Nothing on the upgrade downgrade list so far. I'm looking for followthrough today from yesterday's gains. It may not come at the open but if we can build from here. In reality the followthrough doesn't neccessarily have to come today but it would be nice.

My apologies for yesterday as i had 3 computers in my house all crash at the same time for one reason or another so it was a very difficult day.

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