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Monday, March 19, 2012


Last week's trading in mlps was not pretty with the index closing down nearly 8 points on the week. The move down came with a corresponding spike in 10 year yields which are nearing 6 month highs. However in the context of the entire bull move, last week's move was really just a blip down and we have not reached critical support levels.

Still one needs to pay attention here as we look at the weekly chart (above) and the daily chart (below). The daily chart is beginning to crack through the rising moving averages and one needs to pay attention to the 89 day moving average (at 390 ) because breaking below that will be significant. 360 on the weekly chart is corresponding support longer term.

And coupled with that breakdown will be a signficant up move in 10 year rates. This weekly chart is telling us that a signficant bottom has been put in so i would think a move to 2.75% on the 10 year looks likely. I would think the only thing that stops that would be a sudden breakdown in the stock market rally. Right now that does not appear likely.

Not much going on this morning on the news front and no upgrades or downgrades to speak of. Markets are flat and APPLE focused anyway as they announce a dividend. Nat gas is lower as it tests its 2.25 bottom of last week which seems to be holding for now. Crude is up a little and bonds are a little higher (yields a little lower) ahead of the open.

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