DEALS THIS MORNING FOR

EAGLE ROCK AND LEGACY

ANOTHER NATURAL GAS OPPORTUNITY

Late last evening Legacy Reserves (LGCY) announed a 20 million dollar purchase that will be immediately accretive and could result in a higher distribution although they did not say by how much. Then early this morning Eagle Rock (EROC) announced a larger deal and they increase there free cash flow guidance significantly. Both stocks should be market movers on their specific news.

This morning we have nothing on the upgrade downgrade list. S&P futures are stronger. The energy complex is strong this morning except for natural gas which is down 8 cents in pre market electronic trading. 10 year rates are flat around 5.08%.

Speaking of nat gas I sold out my nat gas trade yesterday morning before the selloff and right near the top. Then the selloff came and the UNG-EFT dropped to 42.35 from 43.98. So near the close i bought a few shares and will buy a few more this morning ahead of the nat gas data at 10:30am. I am guessing they are selling ahead of the numbers and unless the numbers are truly a disaster i am betting that nat gas will turn around a rally. This is a high risk gamble but so far i am 2 for 2 here.