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Wednesday, August 19, 2009

Markets quickly turned around this morning and it is typical in a bull move just how quick sentiment can get negative. 2 down days in a row and the world was about to end again. MLPS turned around are higher. Energy stocks are leading the way today with oil up and nat gas even putting its head above water.

Most mlps are moving fractionally but the vast majority of them are higher. Atlas Energy Resources (ATN) Martin Midstream (MMLP) and Holly Partners (HEP) are the bigger winners today up 50 cents or better. Not many losers and the few that are down aren't down by much.

Lots of talk about what is going on with UNG and DXO with the etfs no longer issuing new shares and that is creating a bit of a shortage. UNG which is supposed to trade on par with nat gas is actually trading at a premium by about 10%. Im not sure what to make of all this and being long in here does make me a bit nervous. I wonder if nat gas every rallies whether there could be one of these artificial situations where the price is driven higher than it otherwise would. Of course this can work both ways. Im watching carefully here for now. Ultimately its about the trade and about what nat gas does...and if it moves from 3 to 4 dollars, even if the UNG returns to normal trading values..there is upside. IMHO of course. Unless of course im missing something here. Thanks max for the post...Guys let me know if i am not seeing this properly.

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