WACHOVIA UPS SUBURBAN PROPANE

CRUDE BACK TO NEAR 60 BUCKS

AT WHAT POINT DO WE CORRECT?

Its Friday in an upside week which wasn't rip roaring but the trend continues higher and of course now where 1.12 away from 300. No corporate news this morning but Wachovia liked Suburban Propane's (SPH) earnings so much they up the stock to outperform from market perform. The stock was up nearly 2 dollars yesterday and there should be more upside today. Meanwhile i've been talking about the A G Edwards downgrade of Crosstex LP (XTEX) and it looks like the downside may have been completed yesteday as the stock spiked into the closed and finished at the high of the day.

Looks like Suburban Propane has broken out of an inverse head and shoulders pattern which is very bullish. Crosstex LP bounced off the 89 day moving average yesterday and could have a contra-trend bounce toward 39. But clearly Suburban has the better looking chart.

Meanwhile Crude is trying for the 4th time this week to break through 60 bucks. Lets see if today is the day. Cold weather should continue at least through next week and it could turn bitter cold later next week if a snowstorm developes in the mid-atlantic and northeast. Jury is out but we're watching.

Now i have touched on the idea of a correction and i have a tendency to start worrying about these things a bit early. Let me say that i don't see any immediate signs of a top and while 300 on the MLP index might be a logical point where some selling could occur, I believe that our group is tied to the overall market rally so i think we could have more upside here. However let us bare in mind that we have moved nearly 20% on the index (not including 2 distributions) since October 1st 2006. That is quite a move certainly so at some point we are going to need a pause. Again I don't see anything imminent and i tend to start worrying about sell-offs a bit early but i think it is wise to put it out there as a possibility.

So far individual issues have been undergoing sharp rolling corrections. Yesterday was Valero LP's(VLI) turn as it dropped nearly 2 points intra-day before cutting the loss in half by the close. Holly Partners (HEP) did the same thing over 2 days before rallying back late yesterday. This type of action is typical of bull moves and they do set up trading opportunities as long as the selloff is not corporate news induced.