SELLOFF TO START THE DAY...

WILL MLPS DIVERGE?
CRUDE AND NAT GAS SELLING OFF
EARNINGS AND NEWS TO PONDER

So we begin the day with a market selloff that started in China and has spread across the globe and now has arrived in New York; at least at the open. Dow futures are down 77 points and most other markets are down 1 to 2% Its been a long time since we've had a morning like this so it may produce opportunities. The 10 year is benefiting as the yield is down to 4.60%. So with that backdrop we have earnings last night from Oneok LP (OKS) which look good as revenue and profit surge. Also we have Atlas Pipeline Partners coming out with lower earnings blaming commodity price issues. Most of Atlas Pipeline's exposure is hedged but i guess there was some impact as prices declined in the last quater.

Teekay LNG Partners (TGP) and Teekay Shipping (TOO) are getting the ding from A G Edwards as they downgrade the pair from buy to hold. Both stocks are being offered in the pre-market below yesterday's close.

Okay so we know we're opening lower today and if this has impact on MLPS could this be a buying opportunity? Well certainly if you were looking for a place to buy some recent big winners at lower prices, you may get your chance. Again I like to use the 34 or 55 day moving averages as logical entry points. The AMZ MLP index if it gets caught in any overall market selloff could head back to the 295 level and do no damage to the uptrend.

E V Partners has been a recent winner and they have already pre-announced the distribution for Q1 so it has some natural support. A trip to 25 would be a real gift here.

Sometimes stocks pull back to the moving averages and sometimes the moving averages get pulled up to the stock price. In Linn Energy's case its been the latter as it has been in a very tight range for many days now. 32 is solid support and i may back up the truck if it drops there.

Duke Midstream (DPM) is another one that I like and 36 looks logical as an entry point.

So we wait for our day to start and it should certainly be an interesting beginning.