WHICH CHART IS WHICH?


Talk about performing in line. The charts below are of Teppco and the MLP index. Take a look and see how different they are!

Teppco (TPP) has pretty much followed the index almost tick for tick. I highlight this because this morning Citigroup ups Teppco to buy from hold. Could this be a signal for the entire group?

No news headlines this morning. Crude broke 120 yesterday and this morning the energy complex is pulling back a bit. I continue to believe that we are topping in here (finally) on crude and a trip down to 100 is coming very soon and will happen very fast. I'm not sure what the catylist will be to move this idea along but i figure its a safe way to hedge in here. If there is a broad sharp energy stock sell off expect mlps to follow along at least initially. Nat gas is the wild card here because i think any pullback there should be bought. No guarantees of course but i'm figuring at these levels it can't hurt to be a little cautious. If i had guts i would short USO which is a proxy for crude and trades on the AMEX. Instead i'm long DUG which is double short oil and gas and long some may calls on DUG. Fingers crossed.

Lehman is leaving Duncan Partners (DEP) at equal weight though it takes its price target down by a buck to 24 from 25. No otber news. BTW the MLP index is quietly doing a nice repair job in here as we continue to base build.

Constellation Partners (CEP) saw some buying yesterday closing up nearly 1 on decent volume. Now it could be a distribution play...or...the fact that a 2 million share block crossed last Friday and that might have been the last overhang of stock supply. We can only hope.