Two downgrades are on the wire this morning as Deutche Securites cuts Calumet Products Partners (CLMT) and Plains All American (PAA). In the case of Plains it lowers its price target to 50 dollars. No target specified for Calumet. It seemed like these Deutche downgrade rumours hit the tape yesterday as Calumet dropped 2 points after 2:30pm and never really recovered.
Notice this one has been on fire and in a fabulous uninterrupted uptrend. A trip back down to the moving averages here seems logical.
Also Energy Transfer Equity (ETE) took a hit in the last 15 minutes and sunk back to near 30 before getting most of it back near the close. Someone posted in the comments section yesterday about seeing a Deutche Downgrade but I have not seen any confirmation of that...nor is their anything on the wire about it this morning so far.
The Kinder Morgan (KMI) deal has been approved by shareholders. Look for the deal to close sometime in the first quarter of 2007. No other news items on the tape so far this morning.
The MLP index closed down two days in a row for the first time in quite awhile. And yesterday's weak close came after being up over 1 point earlier in the day.
Is this a top short term? We won't really know until the correction is well underway and at some point this straight up move of the last few months needs to rest. I want to emphasize that we're talking very short term here.If the index corrects to the moving averages...and thats a big if...it will provide another opportunity to add to positions at lower prices.
joseph cioffi's Source Page - Associated Content
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