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Wednesday, February 09, 2011


Enterprise Products Partners which usually makes news by increasing the distribution every quarter had something far more serious to deal with yesterday. Here is the latest on the explosion which, so far, has had a small impact on the stock price.

Also we have the raw video from Associated Press. Not much new here except that it doesn't appear this is going to be anything that hurts the company in the longer haul like we saw with BP and the gulf oil accident. But these things have a way of evolving sometimes so we will keep a watchful eye. Meanwhile the stock chart looks like a double top formation is in place and that could be another signal that MLPS and there outstanding bull market of the last 2 plus years may be winding down. Enterprise is a large component of the mlp index. Its up 35 cents in a few pre market trades.

Not much else in the way of news on the corporate side this morning. Some other headwinds are showing up today with stock futures lower but nothing earth shattering. Rates yesterday climbed to 10 month highs as the 30 year is now at 4.75% and the 10 year now at 3.70%. MLPS may (finally) start to pay attention to this and we should as well. The distribution cycle is winding down here. Its a long 3 months until the next payout and short term holders may have the fingers on the sell button in here so be advised of the possibility that there could be a rush out of here if rates continue to move up. No upgrades or downgrades to speak of this morning. Nat gas is selling off again as the prospect for colder weather takes a break over the next 2 weeks..or at least not as cold and stormy as it has been. We seem to be in that 1 to 2 week break that usually occurs in mid to late January. In past winters the original pattern comes back for a second round so we will be looking for that possibility. Still its nice to finally see some bare ground and grass!!

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