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Friday, September 30, 2011


The quarter closes today and on the MLP index it was not a good one as we started at 367 and this morning we sit at 342 so we're down about 7% as opposed to the overall market averages which are down around 4-5%. Still it doesn't fell as bad especially if you are in stocks like EV Partners (EVEP) which is up on the quarter and at the August low it could still have been had for a price in the low 50s.

Same can be said for Oneok (OKS) and Sunoco Logistics (SXL) which also could have been had for relative bargain prices if you had been quick enough. Of course we're paid 3 to 4 times the 10 year yield to hold these things! And at least so far the group as a whole continues to hold the trading absolute lows at 320. Technically it looks to me like support short term lies around 335-340. If the market decides to take out that 1120 S&P bottom and head for 1000, (dow takes out the 10,600 low) then i think the MLP index goes along with it. We may be at the point where winners will have to be sold by traders. And of course the big pink elephant in the room is a Greek default and whatever turmoil could come with that. And make no mistake, its coming.

No news and no upgrades or downgrades this morning. The volatility yesterday was nothing short of ridiculous and look for more today as we work through the last of the end of quarter nonsense. Europe is selling off today and they are running into the 10 year again as its down below 2%. Fasten your seatbelt.

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