Cheery start for 2009

Last week started the new year with a bang. Oil, as tracked by the OIL ETF, also began the year the year with a bang (after its recent bear market). Not sure what it all means other than they're both betting on a quick economic turnaround.


Dow Jones Industrials --- 2 weeks





Oil (ETF) ---- 2 weeks




One of strongest performers was the Alerian MLP Index. The last 2 trading days saw it jump 20 points (12%) for no apparent reason other than MLPS are greatly oversold. Other high yielding securities (REITs & junk bond funds) had more mild responses to gains in the markets. The chart below shows the MLP had its 3 biggest daily gains in the last 3 months: Oct 13, Nov 24 & Fri. The first was followed by a 3 week rally which fizzled. The 2nd was followed by a flat period. Let's see what follows Fri's big pop.


Alerian MLP Index --- 3 months




Stock markets are sailing into headwinds. Auto monthly sales figures for Dec will be reported tomorrow, they're expected to be ugly. In DC, there are vacancies in the senate. It's unclear when they will be filled & who will fill them. The vacancies can have major significance for the markets which are looking for a $1T stimulus package to be proposed & passed by congress.