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Mlps closed basically flat as the dow closed up almost 500. Right now futures just a little lower as asia plays catch-up. The euro is up a couple of ticks but under 1.35. Europe is still a problem inspite of central bank actions.

WORLDWIDE FED ENGINEERING!

Central banks from around the world got together and orchestrated a one day rn ujp in stocks. The move is to get the banks working again in Europe. My own view given the hints of the last several days in the bond market was that someone out there was about to go under and the central banks had to do something to stop the blood flow at least for the time being. So the end of the world has been averted at least for now and the dow is up 400 points in relief as of this post..not too far off the +430 high of the day. And if the rally were really the beginning of something big, why is the 10 year yield only back up to 2.06%?

MLPS however are not doing much. The index is up a little over a point and while there are some individual moves like Williams (WMZ) which is up 1 and Atlas Pipeline (APL) also up one, most mlps aren't doing anything unusual. Kinder Morgan (KMP) is at another all time high in here as it nears 80 bucks. Sunoco Logistics (SXL) is down 2 but still over that magic 100 buck mark.

Last hour approaching. I would think with the Euro off its high of the day and bond yields not rising would be a reason for them to lean on this rally. 12000,1240 and 2600 all are psychological lines in the sand. Technically we are around or still below the 200 day in most averages. But its very hard to fight the tape. Overall we have seen the dow go from 12,200 to 11,200 and then back to 12,000 in 9 trading days. MLPS have been in a range between 360 and 370 during that stretch. At least its relatively stable somewhere!

MLPS still up 1.51 but there is distress showing up elsewhere. Maybe the reason why the 10 year did not sell off yesterday in the big stock rally is because it is smelling a bank in trouble. Bank of America is flirting with 5 dollars right now. If that breaks below 5...look for a big late day selloff.

This does not look good folks. Spreads are about to blow out.

ARE WE THE LAST TO TOP OUT?

We seem to be at the point where our group is probably the last group standing. When you scan the charts from the broadest energy stock index to techs to everything else, all the charts have broken down. Yesterday was another periodic exercise in delusion. MLPS seem to be the only group that is working. Check the new 52 year high list and you will find mlps and not much else. But if we are on the verge of a major breakdown, we are going to go down with it. The question is whether we will hold up better than everything else. If we look back at the 2008 unwind, mlps were being sold hand over fist because of the massive seizure in the credit markets. If there is another seizure than we could see another big unwind. However the lesson of 2008 was that when the bottom was put in, it was a lifetime buying opportunity. First things first though is 355-60 support and then 320 which has been the short term bounce point. So lets keep a watchful eye.

BTW based on the weekly chart, after 320, 280 would be the next logical place. I think its all going to come to a head in the markets over the next few days.

No news of consequence this morning on the corporate side and no upgrades or downgrades. Stock futures are following Europe tick for tick. Europe traded off the Italian auction which somehow was viewed as not a disaster. Record yields here are absolutely unsustainable. The clock is ticking and ticking fast.

BOUNCE ON ENDLESS HOPE AND PEPPER SPRAY!

Europe is front and center this morning again as we once again have another plan to plan to have a plan. Combine that with retail sales this weekend that were especially strong among groups of people that use pepper spray and you have futures up sharply. In reality a bounce of size was coming considering we've been down 7 days in a row and closed last week on the low tick of the week; 900 points down in 7 days means we open up. The question is what happens after we get through the open and whether they start to lean into this rally.

MLPS held up pretty well last week when compared with the rest of the market which fell apart. Straddling support we will of course head higher on the open this morning and here too we will see if they lean into this after the open is worked through.

No corporate news this morning and no upgrades or downgrades this morning. With all the risk on trades working this morning everything is up including yields which are up 10 basis points on the ten year to 2.07%. European yields were higher overnight in Italy and Spain but are now a little lower. In the end inspite of all the day to day noise absolutely nothing has changed. Europe remains in the edge of the abyss, the US is on the edge of a recession, and no solutions are in sight. Again watch the rally and see what happens later today.

Just a quick update before i hit the road. The euro rally has evaporated and stocks in Europe are selling off with the Euro which has dropped 1/2 cent in the last hour. Stock futures here have turned lower.

Okay sweet potato biscuits ready to go...hitting the road shortly.

HAPPY THANKSGIVING!

Just want to wish all my readers a very happy Thanksgiving to you and your family and be safe and eat well today!!! Every year we are on this earth is a good year folks no matter what markets bring you!

Euro markets are not falling apart this morning however they bounce we are seeing is about as dead as a dead cat bounce you can get. And i just noticed that the Euro has turned lower so euro stocks have come off their highs. The DAX was up 100 now up 50. The FTSE was up about 30 now up only 5 and the CAC is up 25 after being up about 50. Our own stock futures are trading and they are up about 40 dow points...which gets you back the last 5 minutes of yesterday.

And since tomorrow kicks off the Christmas shopping season let me say 2 things. First off, refuse to participate in that horror of black Friday which begins tonight. I refuse to have any part in retail as they have ruined Thanksgiving and it really should be stopped. And (here comes the shameless self promotion on my part) if you really feel the need to shop, do it through the amazon link above. It doesn't cost you a dime and Amazon sends me a small cut which lets me pay a bill or 2! Some of you have and i really really really really appreciate it!

Barron's blog has mlps mentioned today. Don't need to be a subscriber.

Markets off the lows as people start to head home for Thanksgiving.

The mlp index is about to break below its moving average support lines though its down a little less than 5 points. Markets are imploding including the euro which is selling off hard after holding up for so long. The mlp index is among the last measures to breakdown below support. The markets sort of remind me of this!

Europe is clearly melting and is Dorothy the ECB? Or is the scarecrow Ben Bernake.."if i only had a brain!"

Europe is on the edge. Good interviews and perspective in case you missed it this morning.

WHO WANTS TO BE LONG FOR THE HOLIDAY?

For mlp holders being long over the holiday doesn't afford too much risk. The stocks remain (for now) closer to their highs for the year than their lows. So far they have resisted the bearishness that is spreading across all markets. The support levels for mlps remain above the supporting moving averages and they may be one of the last groups to be in this position.

The dow was the last chart to break below the 50 day (of the major averages) and we are now have pretty much nothing from here down to the lows around 10800 or so. The news this morning is not good all the way around from the China PMI index dropping below 50 and the lowest in 32 months to the situation in Europe which may now being getting very close to the edge of the abyss.

The German bond auction today was by all reads a disaster with virtually no demand. It appears the crisis is spreading into the core. We could be rapidly approaching the tipping point here. Given all the uncertainty does anyone want to be long with us being closed tomorrow for Thanksgiving and limited trading Friday while Europe continues business as usual?

Being its the day before Thanksgiving the news front is quiet on the corporate side. No news and no upgrades or downgrades. Stock futures here start us down about 100 dow points. Crude is selling off and if the market selloff takes us down to October 4th lows look for brent to head below 100 bucks. The euro is selling off on the German bond disaster. Gold is down which in my view is indicating that someone out there is selling due to stress (major european bank?). The 10 year is at 1.95%. There is potential for it to get ugly as the day wears on.

DICEY MARKETS ATTEMPT BOUNCE....BUT?

Certainly the drop of 600 points in 4 trading days means the market is entitled to some sort of technical bounce. But there are big headwinds all over the place. Europe which got hit pretty hard yesterday was up earlier but those markets have now turned lower. The GDP figure for Q3 was revised down to 2.0 from 2.5%. The super committee failed which was no surprise. We could go on and on here. Markets are staring into the abyss as all support levels below have been pretty much taken out. So unless we get some market moving headline look for sellers to try to gain the upper hand and fade any rally attempt.

Of course MLP holders continue to enjoy relative comfort as the index closed well off its lows of the day yesterday with a little bit more than a 3 point loss and still above all important support. Legacy Reserves (LGCY) gets an upgrade from Baird this morning to outperform from market perform. Cheniere Energy (LNG) is up a buck in the premarket in active trading as they sign another 20 year LNG deal. Otherwise its a quiet morning on the corporate side.

Stock futures are sinking fast right now after being higher are now lower across the board. Yesterday's intraday lows loom large here. Euro markets have lost their gains and are now lower. The Euro was higher and now it too is heading back to the flatline. Crude is heading back to unchange but nat gas is a few ticks higher on colder weather prospects down the road. MLPS will continue to outperform but at some point if this sell off really starts to get serious, they will be sold. And btw with all the uncertainty in Europe, would you want to be long going into Thanksgiving? Europe is open Thursday while we are shut down. Should be interesting for sure.

MLPS are down with everything else...off over 7 points on the index. This puts the index right into the moving average support zone. So a break below 360 could be ominous here for the group but then again it would be in conjunction with the overall market anyway. The dow is down over 300 points as he head into lunchtime with the S&P and Nasdaq all down sharply and all important support has been taken out on all the averages.

Specifically among mlps, Alliance Resource (ARLP) and Sunoco Logistics (SXL) are both down just under 3 points. We have a long string of mlps which are down between 1 and 2 points. The winners list right now is empty.

Lunchtime has taken us a touch off the lows. It might get really ugly after 1pm.

BE THANKFUL WHEN THE WEEK ENDS!

One of the problems when looking back on any given period of time...say the week before Thanksgiving, or the last quarter of the year for example, it assumes that every year conditions are always pretty much the same. Well folks, this year, it appears that we have put a financial meltdown on the table. Europe continues to circle the drain and we see nothing coming today that indicates that the ECB will step foward and stop their problems. Over the weekend Germany's position of no bailouts for Greece, Italy, Spain, or anyone else. only got harder. The bond market has been successful in overturing another government as Spainish elections have thrown out the socialists. Meanwhile the shock of all shocks was that there was no deal on the budget from the Washington Super duds. So the markets are set to open down sharply lower this morning, More on that later.

Let us, for now suspend the world for awhile and look at mlps. The chart has yet to break down and actually remains locked in this sideways pattern we've been in pretty much since May. Buying down at 320 has been smart. Selling up here around 370 has been also smart. 390 is the all time high which is not that far away. So what puts an end to this lovely little world? If the world does meltdown again ala 2008 than we will see our little group unravel. I would point out that we probably have more people invested in mlps now than we've ever had before. (there are commercials running on CNBC!). Fundamentally the group looks pretty solid so it will give us the chance to gather shares on the cheap again.

Back to the markets note that last week did damage. Starting with the Nasdaq the rising moving average support lines did not hold. The dow chart is the last one to breakdown and will do so at the open this morning. I use fibbonacci based, expotential moving averages, but the simple 50 day moving average which is widely followed sits at 1206 and that goes at the open. The 1200 level might hold for awhile today but ultimately it will go as well.

For the dow industrials that average sits at 11523 and it will probably get there at some point today if the selloff accelerates later today. Note that the dow is the last chart to break down. The broader index charts broke down first and that is not good.
The nasdaq composite which is the most speculative of the indexes was the first to breakdown late last week.
So with the breakdown of all major support i think we can pretty much look to the October 4th bottom for a serious retest of that level. Given everything we are facing right now, the odds of that level holding are shrinking fast especially if Europe unravels.

Okay back to MLPS we have Global Partners (GLP) annoucing a deal this morning that is accretive to earnings. Otherwise its a relatively quiet morning here with no other news and no upgrades or downgrades.

Markets are down pre open as mentioned but a little off the lows of the morning as Europe comes a little off its lows of the day. Crude is down and Brent is down to 106. 100 is critical there. The dollar is stronger pretty much across the board. Nat gas is down a little. No cold air in the US right now to make a difference. Weather patterns may change to colder across the midwest and northeast later next week. Gold is down on the idea that when you need to raise cash you sell what you have. So the open looms on what does not look like a good day ahead.

Open looms..does not look impressive. Look for sellers to arrive for the big test.

BOUNCE PRE-OPEN....HOWEVER????

Stock futures are higher pre open as we are looking to bounce higher at the start. The bounce began very late in the session yesterday (last 2 minutes..about as late as you can get!) when the dow went from -200 to -134 at the close. Yesterday's close among the major averages saw important trendlines being taken out in the Nasdaq and the S&P 500. The Dow closed right on its uptrend lines. The 50 day moving averages lie just below and i would expect that they will be tested today after whatever bounce we get. And make no mistake folks if they don't hold, look out. Meanwhile the Euro is up over 1 cent this morning so far and i'm beginning to wonder whether the currency market is beginning to bet the the Euro survives as the southern European countries eventually separate themselves or leave completely. A smaller eurozone made up of the Northern Euro countries could send it higher. It has been one of the possibilities put out there but it just adds to the confusion.

MLPS yesterday closed higher and actually have had a pretty good week. The tape here remains firm and i suppose when you have 6% yields in the face of a 2% ten year, money just continues to flow in here. In the end, if we are at the beginning of a move back down to the bottom of the market range (1080-1100) on the S&P, mlps will eventually sell off. I have to be honest folks, i'm getting a little uncomfortable seeing all the attention mlps are getting with CNBC commercials running all day long. There is a much larger contingent of fast money getting in here and you have to wonder what will happen if these holders have to raise cash. Still you have to let the tape tell you the story and for now mlps remain in fairly good shape.

No news on mlps this morning and no upgrades or downgrades. European stocks are mixed this morning but not exactly bouncing. The 10 year is sitting at 2% and up a few ticks. Gold is higher. Oil is nudging up against 100 bucks after being down over 3 bucks yesterday. Keep your eyes on what happens after the open and if the sellers gain the upper hand. And of course the 50 moving averages which sit at 1205 on the S&P 500, 2589 on Nasdaq (nasdaq is 2 ticks below it), the Dow Industrials at 11,507, and the MLP index at 355. Btw Nasdaq was the first to go up through the moving averages and trendlines in the rally and its been the first to move down through those trendlines. So they have been a great leading indicator.

BTW for the S&P the 50 day moving average is at 1204. If this goes...look out below.

The mlp is down a little over a point here as mlps hold on as the last haven of safety and always in a sell off, it ain't over until they get to us. And it may be awhile before they get to us judging by the tape action. And its a run to cash as gold is down nearly 60 bucks here. They aren't flying into the 10 year as its yield is only down 5 basis points to 1.97%. The October low yield is down around 1.69%.

Market suddenly in free fall collapse mode here down 180 points in a matter of minutes. MLPS were up but have now turned lower. Important support is being taken out rather quickly and the tape is getting extremely heavy. Something big is happening.