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Wednesday, March 14, 2012


Picking bottoms can be a fools game but yesterday's moves in nat gas might be something to pay attention to. Nat gas prices came down below the low from early January and staged a key reversal by closing higher than the previous days high. The move came with the stock market rising over 200 points yesterday so you have to wonder whether shorts just decided to cover at the same time. But there is a short term floor at $2.25 and we'll see whether it holds. Nothing has changed as far as fundamentals are concerned for nat gas but the chart is interesting in here.

MLPS meanwhile responded yesterday not to the stock market rise but to the spike in bond yields and closed down on the day. The 5 month high in the 10 year has provided a little headwind to the mlp index in here as it struggles around the 410 area. Yields this morning are up 10 basis points to 2.20% and the index is down 1 and is holding above 401. A break of 400 might bring in more sellers so we might want to pay attention in here. Kinder Morgan Partners (KMP) continues to back away from 90 dollars and is at 84 and change right now down 71 cents. Sunoco Logistics (SXL) Markwest (MWE) and Plains All American (PAA) continue to back away from their recent trading highs. Still the overall market is a tail wind as the S&P approaches 1400.

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