adbrite ads

Your Ad Here
Your Ad Here




Tuesday, February 22, 2011


It took a few mideast nations being set ablaze but the result is a sell off to start the day in markets. However the risk premium in crude oil has increased as a result of all the turmoil in Lybia among other countries as the revolt spreads. Sky news Austrailia is reporting that a Muslim cleric has issued the order that Momar must die. Other Lybia and mideast developments can be found here along with a variety of opinion and context. The result was a lot of action yesterday as US markets slept for the holiday. Crude oil shot up as much as 8 bucks a barrel. Right now its up well over 6 dollars. Even nat gas is up 2%. When it takes a few nations to be set ablaze for your commodity to move up 2%, you know your in a bear market!

Now while stock futures are taking a hit of about 90 dow points and the S&P is down about 16, energy stocks are firm in the pre open. I would expect MLPS will hold their bids at least early on. The key to today's trading will be whether the news is just a trading event or a market event. My guess is that its a trading event so once the initial selling gets out of the way, buyers will come in to take advantage. That has been the pattern in this melt up we've been and i see no reason for that to change today.

Earnings news today from Atlas Energy LP (AHD) which was formerly Atlas Holdings and Atlas Pipeline Partners (APL) which reported strong results and a healthy DCF of 1.3x. The stock has been running into this so it may sell off on the news. No indications yet in pre market action. Crestwood Midstream (CMLP) is announcing results and also announcing that its picking up some assets. The stock also has had a nice run lately.

Nothing on the upgrade downgrade list so far this morning. Bonds are higher/rates lower with all the turmoil but the flight to quality is only on the order of a few basis points so far. Euro stocks are lower and Asia closed lower. Gold is rallying and the dollar is also catching a bid. Should be a fun day ahead.

No comments: