DAY AFTER THE BIG PLUNGE

MLPS HELD UP BETTER THAN MOST!

That last hour saved MLPS as the index was down nearly 7 points but got back 2 1/2 points to close 4 1/2 lower.

When the overall markets are in turmoil we are no exception and will move with everything else up to a point. And then they seperate the stars from the dogs and things slowly get back to normal. I would expect the bounce to continue today and that 4.80% 10 year yield at least keeps the MLP yield 10 year spread a little wider and more attractive. Meanwhile earnings and distribution increases continue to roll in. Buckeye Partners reported numbers last night along with a distribution increase. Buckeye Holdings also bumped up its distribution to an even dollar annual. Williams Partners (WPZ) gives us a nice distribution boost as well. And Terra Nitrogen (TNH) was up 5 dollars yesterday as it announced a 3.00 distribution for the quarter along with very good earnings.

Meanwhile yesterday Energy Transfer Partners denied that it was manipulating the gas market and confirmed that legal action is underway. Here is a quote from the press release.

The Commodity Futures Trading Commission ("CFTC") have commenced legal proceedings against ETP. FERC claims that ETP should have obtained higher prices for its monthly physical gas sold at Houston Ship Channel primarily during the fall of 2005 following dislocations in the market arising from Hurricanes Katrina and Rita. The CFTC does not allege that ETP had any actual effect on prices or harmed either the natural gas market or any of its participants, but rather that ETP made an attempt to affect prices.

So basically they are being accused of not getting a higher price for their gas and that they did not affect prices but that they tried to. Normally energy companies are accused of keeping prices high.

Back to this morning we have no upgrades or downgrades on the list so far but the morning is early. The energy complex is up this morning. So sit back and wait for what should be another fascinating day.