BROKERAGES CAPITUALTE

Merrill Lynch yesterday downgraded DCP Midstream (DPM). Constellation Energy Partners (CEP) has seen the three houses that have opinions downgrade it in the last few days. These downgrades are coming at or near 52 week lows which is a good place to do it. Is it a sign of capitulation? Who knows. I've thrown my hands up a long time ago. E V Partners (EVEP) should give holders another reason to sell this morning as the post earnings that after you cut through the hedges were excellent, announce 200 million in aquisitions, raising guidance, and they are going to raise the distribution to 75 cents from 70 cents bringing it to 3 dollars annual and a yield of 11.7%. Markwest (MWE) should have sellers waiting for it too as it announces spectacular earnings and increases guidance.

The MLP index yesterday finished with a 2 point plus gain which happened in the face of fallinf energy and falling energy stocks so the divergence was nice. Today is a new day however and we have falling crude again so look for big energy stocks to start the day under pressure. Nat gas is a little higher however. Stock futures have been improving all morning so the broader market will provide support. The dollar continues to rally strongly as the Euro has gone from 1.60 to 1.48 in a hurry. No help from that end.

About the only positive thing at this point is by the time the distribution checks come on Friday you probably can average in at 15% yields. Glory!