UP ON A DOWN DAY

After yesterday's mess in the overall market and with oil just a few ticks under 100 bucks this morning we can take some solace in the fact that the MLP index actually closed up yesterday. But i would be the first to point out that it was a handful of issues that drove the index higher and most mlps finished lower on the day.



Thought i'd put the dow chart up as well. The dow chart looks like it wants to break down below the August lows while the MLP chart looks like it is tracing out its bottom and wants to move higher. You won't sell me on that until we break above 310 but at least its trying to move in that direction.


Looks like the January effect took hold of a couple of issues yesterday Crosstex LP (XTEX) closed up 1 and change and Boardwalk Partners (BWP) closed up 1 point. Meanwhile on the other end of the tape we have Linn Energy (LINE) down nearly 1 and DCP Midstream (DPM) down 2.50. Linn may be reacting to oil near 100 and DCP had its January rally in the last week of December when it ran from 37 to 46. But one day does not a trend make and we'll wait until early next week to come to any conclusion.

Stock futures are a little higher this morning and oil futures overnight got to 99.98. I might...i have not decided yet...but i might go short the United States Oil Fund (USO) which is a proxy for crude or i may buy puts on it this morning. Just think that everyone and their mother is bullish on oil which makes me want to take the other side for a short term play. Meanwhile the idiots in the political world are caucusing in Iowa today. God help us all. BTW nothing makes me want to vomit more that John Edwards. He is the biggest example of a limo-liberal there is. Here is a guy who made millions as a lawyer and was working for a hedgefund. He then said he worked on the fund in order to study Wall Street's impact on the middle class...which makes this the most fabulous work-study program around.

No news among MLPS this morning and no upgrades or downgrades so far. Crude just ticked lower by 8 cents. Inventory numbers will be the play today.