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Monday, April 04, 2011


Friday's up close over 380 puts us in the area of new all time highs (or reasonably close enough) as the overall market breaksout to new recovery highs. The second quarter got underway with higher prices at least for the first day. Now begins the first full week of the quarter and we have some questions on the table as far as what will happen in the next 3 months.

There is no doubt that the trend is your friend and there has been little to break the overall uptrend. The questions remain pretty much the same. Rising crude so far has actually had a positive impact on the markets especially energy stocks. We are still waiting to see whether or if rising interest rates have an impact on stock prices. Rates especially on the long end are hovering below recovery highs but have been going pretty much sideways for the last 2 months. Government shutdowns, nuclear radiation and Middle East government meltdowns have done nothing to derail this bull. Maybe someday they will but for now we're just going to continue to move merrily higher.

MLPS are at that point in the quarter where companies are telling us when earnings are going to come out and not much else. There are no news headlines this morning and no upgrades or downgrades so far. Stock futures are a little higher along with crude and most overseas markets. Rates are a couple of ticks above the Friday close. Nat gas of course is lower before the open and the dollar is lower.

During this MLP rally there have been a couple of the major mlps that have been left a little behind the rest of the pack. Nustar (NS) and Energy Transfer Partners (ETP) are 2 mlps that have not been growing the distribution on a quarterly basis like many of the others. Energy Transfer Partners (ETP) recent deal might lead to a resumption of distribution growth later this year. Nustar (NS) has also done nothing but go sideways recently and remains a few points below all time highs. If these companies get back on the road to hiking payouts, these 2 mlps could take over leadership. Something perhaps to put on the radar.

Buckeye Partners (BPL) has done nothing but trend downward since it hit 70 back in early November. Since then it bought out Buckeye Holdings (BGH) along with selling shares related to the takeover. At some point all that will get digested and this mlp could move to the front of the line among the leaders. All of this assumes that the mlp uptrend continues in the second quarter.

BTW just letting everyone know that i have a daughter in the school play this week and another daughter getting married at the end of this month. So posting may have some sporadic interruptions over the next 4 weeks. Busy Busy Busy!!!

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