CHINA WAGGING THE DOG THIS MORNING

WILL MLP RALLY OFF THE LOWS CONTINUE?

PLAINS RAISES GUIDANCE!

We'll start with the last one first. After the close yesterday Plains All American raised its guidance for the year which should make shareholders happy. Nothing in the premarket yet but i would expect this one to trade higher. This type of news seldom spreads to the rest of the group but it doesn't hurt. The main news driver this morning in the broad market is the selloff of 6% in China as they raise taxes on transactions to slow that market down. This will play its way through the first half hour and then the market will go its own way. MLPS did well yesterday closing over 325 and at the high for the day. Whether the rally continues or not will depend on the 10 year which is seeing its yield dropping a little this morning but 4.90 looms large as an upside breakout point. Watch the Dow Jones Utility average as an indicator of where we will be going in the short term.

No other corporate developements this morning and no upgrades or downgrades either. So bring on the open and lets get the day underway.