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Thursday, December 11, 2008


We seem to be taking a turn for the better lately. MLPS seem to be separating between those whose distributions will remain in tact and those whose distributions are in jeopardy. The Dow Jones Oil and Gas Index looks like its developing a nice base and commodities seem to be waking up a bit. Gold is back over 800 this morning. The oil and gas index needs to get above 450 on the close and we could have some sort of breakout.

The mlp index is been building a much less orthodox base with wider swings between 150 and 200 and we are pretty much now in the middle of that range. The percentage move yesterday was greater than other indexes so we are continuing to see relative outperformance. This is all fine and dandy for the short term. Longer term we may still have issues. But at least for now things are getting better. Players should let stocks come to them rather than chase. The biggest winners potentially lie in those mlps that may cut the distribution based on today's prices but turn out not to. Its a risky play. Right now the bigger mlps whose distributions are solid seem to be getting the bang for the buck.

This morning we have no corporate developements and no upgrades or downgrades. Crude is higher by over 2 dollars and again its nice to see them move independently from the overall stock market. It could be that some confidence in tangible assets is creeping back. Hey at least its better than unrelenting declines.

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