SOMEBODY SEES VALUE (I THINK)!

I've never been quite sure how the marketplace views these things in the MLP space but this morning we have news that a wholly owned subsidiary of Oxidental Petroleum is taking a stake in the general partners (GP) of Plains All American (PAA) for an undisclosed sum. Looks like some partners are selling their stake.

In the past these types of moves have had some impact...and sometimes they have no impact. One trade in the premarket on Plains this morning of 100 shares which is worthless so we'll wait for the open.

Penn Virginia Resources (PVR) picked up some more assets in news issues after the close yesterday. This is a coal play that has not moved much recently with other coals probably because of the general disfavor in the mlp space more than anything else.

Other than that we have a relatively quiet morning with everyone wondering if yesterday's market key reversal was anything other than the end of some selling but not the final bottom or something more important. Also we wait for the ECB rate hike which is expected tomorrow and hopefully its a one and done situation but in the event that they do nothing we would probably sow the seeds for a big dollar rally...especially if the employment numbers aren't a disaster. And that could drive a stake through the heart of the oil vampire. We can only hope.

Nothing much else happening this morning. The upgrade downgrade list is empty. Crude is a little lower ahead of inventory numbers.