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Thursday, May 19, 2011


After yesterday's 8 point plus gain on the mlp index and on a day where strength just built all day long (short covering?) the rally continues this morning and we're up another 3. Note that there is a lot of headroom in the chart until we get to about 370 or so where resistence lies and i am expecting that resistence to be rather formidable. The dow chart on the other hand looks much better and held support so my guess is we are going to attempt to take out 12,800 in short order.
The question is whether MLPS have arrivied at a decisive turning point and are telegraphing (rather noticeably) that interest rates are about to begin an important move higher. The key will be to see whether that 370 is a brick wall and that ultimately we head for new lows under 350 while the dow and the rest of the market keep going up.

Most mlps are up strong fractions to over a point in some cases like Energy Transfer Equity (ETE) and Alliance Resource (ARLP) which are leading the group higher. No noticable losers on the list so far this morning.

Nat gas inventory numbers out at 10:30am and they are selling ahead of the number which may mean a ride higher when it comes out (famous last words from a trader who just went long!).

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