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Tuesday, March 29, 2011


Two companies are selling stock this morning in the secondary market. We had a Seeking Alpha story last week about Energy Transfer Partners (ETP) and its recent asset grab with Regency Partners (RGNC). The article suggested this was the game changer for Energy Transfer and that it could get it started growing payouts again. The piece also suggested that bulls should wait until after the secondary to initiate positions. Well if your waiting, the wait is over. 11 million plus shares are hitting the tape this morning. The stock is down 1.70 in the pre market. Alliance Holdings (AHGP) is taking advantage of a doubling in its stock price by selling units this morning and the stock is taking a hit of 2.60 in the pre market.

Yesterday we saw a few reversals in the late afternoon that were a little odd. The nat gas one comes to mind. Nat gas had reversed the morning sell off and was in rally mode until about 2:20pm.
Frankly im not sure why the sell off but its been down ever since and this morning nat gas is down a little under 1% in the pre market. It just never seems to get out of its own way no matter how bullish things may look. I guess the market understands that while the rest of the world will continue to use more and more nat gas, here in the US the official Washington policy is negative on natgas because..after all...its an energy source we actually have..and its far smarter to pay rouge nations run by despots through the nose for oil.

MLPS staged a rollover yesterday after being up most of the day and briefly over 380. Then the rally died and the index fell a point on the day. Nothing disastrous but the assault on the old high was unsucessful so we will have to see if this is just a temporary set back. Rates are key and we have a jobs report at the end of the week. And it appears that the Euorpean Central Bank is getting ready to raise rates at its meeting coming up. All of these things are going to play out as the quarter ends.

Enterprise Products Partners (EPD) is expanding its relationship with Anadarko and the stock is bid up a bit in the pre market. It is also expanding its NGL facility in Houston where we will be shipping out liquid natural gas since we are not using it here in the U.S. to the degree we should be. No other corporate news on the tape and nothing so far on the upgrade downgrade list. Stock futures are flat this morning. The dollar is lower. Oil is lower and bond rates are higher. The open looms straight ahead.

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