MORE RATINGS CUTS BUT DOES IT MATTER?

MLPS START AT ALL TIME HIGHS

There cutting ratings this week on some MLPS. We had Sunoco Logistics (SXL) yesterday and today a couple of cuts. Goldman Sachs cuts Calumet Products Partners (CLMT) to neutral from buy. Wachovia is cutting Hiland GP (HPGP) to neutral from outperform. Now i would like to point out that ratings cuts on Calumet came a few weeks ago when the stock was in the low 40s. It corrected to the mid 38s and has since risen to 46 yesterday. Sunoco Logistics got cut by 2 houses yesterday and all that could do was knock out about 20 cents from the price. Now sometimes these cuts take a few trading days to play through but I think the message of the market here is that corrections that come with these cuts are just buying opportunitites. So until proven otherwise i would use these actions to pick up shares at cheaper prices. As always check to see where the moving averages are on the charts as a guide. I use expotential 34,55 and 89 day averages (fibbonacci numbers) as support area. I find they work well. Nothing else in upgrades or downgrades this morning.

The fed meeting ends today with an announcement at 2:15pm. I've been saying that if past patterns hold look for 10 year rates to fall after the announement. I think the MLP uptrend remains in tact as long as long rates stay contained under 5%. Crude Oil is correcting after yesterdays 3 dollar gain; down 50 cents right now. Natural gas was up 10% yesterday; its down about 10 cents this morning. Oil numbers due out at 10:30am will be a market mover. Stock futures slightly weaker.

So its more of the same i guess. We'll let the opening work its way through the tape and post again later this morning once we get through the noise.