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Wednesday, April 25, 2012


MLPS have not exactly set the charts on fire lately as they continue to stairstep their way lower from the 410 high back in late January. At first it seemed that mlps reacted to the push up in yields to 2.40%. That took the index down to 380. But since we hit that 2.40% level, rates have turned lower again.

The latest move down from 2.40 has brought us under 2% occured rather quickly. That move is coming as Europe continues to basically unravel on a daily basis. The overall market continues to de couple away from that. But at some point its going to matter. If yields break below 1.70 it will be a sure sign that decoupling from Europe is the wrong play. MLPS may benefit from the tailwind of falling yields but not if it comes with an overall market meltdown. Im not predicting this but one needs to continue to watch what the bond market may be telling us.

Markets are opening higher this morning. MLPS are higher at the start. But everything is about Apple Computer (AAPL) which blew away earnings. So for now we have an up dow...nasdaq is soaring...and we sit back and watch.

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