ONE PUBLIC AND ONE PRIVATE!

Two offerings are on the table this morning as Exterran Partners (EXLP) is doing a 4.6 million share public offering. Linn Energy (LINE) is also doing an offering but its a 750 milion dollar private placement of senior notes. The company said its going to use it to reduce debt. Linn announced a purchase yesterday of additional assests in the Permian Basin. Those are the 2 major headlines on the corporate side this morning. Exterran is down 1.35 in the pre market. Linn is only showing one trade of 100 shares up 38 cents and the bid ask spreads are even with last night so the premarket move is pretty meaningless there. Also we have a public offering by Inergy LP (NRGP) which will be used to cut debt. The stock is down 1.40 and Inergy Holdings (NRGP) which is merging with the LP in a stock swap is down about the same.

The mlp index has held its own during this correction and notice that the MACD has gone to buy so we may be in rally mode and the logical place would be an assault on new all time highs for the index. That won't come without the overall market moving higher. The dow chart has been building what looks like a long complex bottom of some kind in here.

It sure looks like a triple bottom here so for that to be true we need confirmation by a solid breakout above 10700 on the dow and we need to do it with volume. Then of course the next challenge will be the rally high around 11,100. The mlp index has been a solid outperformer as the collapse in bond yields has been the primary supporter. If this rally is real in the overall market it will come with higher yields. Those yields can move up 100 basis points in my view which would not pose a serious problem to mlps but we may be at a place where mlps will move in line with markets or even underperform by a little as the rest of the tape plays catch up. But there is so much uncertainty out there from day to day. And rallies don't seem to last very long.

Nothing on the upgrade downgrade list this morning to move individual issues and we have bond yields a little higher with higher stock futures. The dollar is basically flat to a little higher among the major currencies. Crude is flat and nat gas is a touch lower ahead of the open. September so far has been a kind month!