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Monday, July 09, 2012


I guess is should stay away more often! MLPS have staged a nice rally. They have cleared their declining moving averages and are up 8 straight days. The markets seem to be keyed on that 10 year rate which is now back down close to its all time low of 1.45% It is trading at 1.51% right now. Spreads remain stubboringly high at around 500 basis points but i guess the market is okay with mlps at these levels, providied the rest of the market does begin a serious circling of the drain.

And while i was away natural gas has been rallying smartly as well and traded above 3 dollars for the first time since January. When it it 3.06 on Friday sellers came in and took it down to 2.79. Nat gas is up today so this rally probably has more upside to it. Perhaps we may be getting into a new rage of 2.50-3.00 in nat gas which at least means that a floor in prices could be in.

 Still this chart has the looks of a longer term complex bottom in nat gas prices and i think the level to watch is still 3.00. A close above this with volume could mean a longer term bottom is in place.

MLPS right now are flat on the day with the dow down about 60 points. Markets seem to be a little softer but with not much conviction. The euro is rallying which is letting crude climb above 85 bucks although energy stocks dont seem to be following suit.

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