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Thursday, January 19, 2012


MLPS seem to making another assault on 400 on the index. Earnings and distribution hikes are kicked off by Kinder Morgan (KMP) who put up earnings yesterday and another distribution hike. Usually these things are pretty much priced in to the equation and we might see a little selling on the news. MLPS will pretty much follow the overall tape which continues to just rally along. And while MLPS are near the top of the range, the rest of the market seems to be playing catch up

The dow is near the two tops of 2011. This will be a critical area for the markets overall. Are we putting in a major top here? If you believe that the economy will continue to improve than the answer to that question is no. If you believe that the world is about to begin another circling of the drain, the answer is now. Its that simple folks. For now the path of least resistance is higher.

Definitely circling the drain is nat gas which is down another dime and sitting at $2.41! The non winter and unending supply has simply caused prices to crash.
This is about as ugly as a chart gets. This is what free fall looks like and there is no sign of a bottom whatsoevr. An oversold bounce is due after being down 7 days in a row and 11 out of 13. But who knows when that comes and what the catalyst is. Crude oil now sells for over 40 times the price of nat gas. 20 used to be the wall!

Markets are set to open a little higher and my guess is buyers will push the tape up as the day wears on.