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Monday, December 05, 2011


MLP are breaking out of the top of the range which has been capped by 375 on the mlp index. Pre open we already have Kinder Morgan Partners (KMP) up 1 and change and knocking on the door of 80 dollars. The all time high on the mlp index is 390 and since the overall market is rallying on Europe solving all its problems this week, its hard to see what is going to stop it.

The dow chart is nearing the top of its recent range which is 12,200. Thats where the rally off the October 25th version of Europe solving its problems wound up. S&P futures are up 17 right now and dow futures means we open just shy of that 12,200. The market pretty much trades tick for tick with the euro which is at 1.3443 this morning, up 1/2 cent from Friday's close.

Back to mlps it is reasonable to assume that if the overall market holds together we could see an end of year rush into mlps since they are the only stock group that has done much of anything this year. So we could have portfolio managers rushing to by them which will put added buy pressure on Kinder Morgan (KMP), Enterprise Products (EPD) and maybe even Plains All American (PAA) which just made that billion plus purchase into the liquid natural gas market which is all the rage these days. Still all this positiveness could be dashed this week if the Europeans put off resolving their issues for a few more months where they can meet and sip espresso again. But of course we all know that European nations all just can't wait to give up their economic sovreignty to Brussels and are lining up to do so.

As the joy spreads everywhere this morning, crude is up, interest rates are up with the 10 year yielding at 2.10 percent. Nat gas is down sharply as winter has been cancelled. Bring on the open folks and enjoy the prosperity.

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