The mlp index finished up about 1 point when it was all said and done and it outperformed the dow and the s&p. So its where they finish kids that counts.

Holly Partners (HEP) climbed 1 and a few pennies and Hiland (HLND) was also a 1 point winner. Penn Virginia Holdings (PVG) Natural Resource Partners (NRP) Enterprise (EPD) Markwest (MWE) and Buckeye Holdings (BGH) had some nice fractional gains.

Losers include Crosstex (XTEX) and Martin Midstream (MMLP) which were down 1 but big chunks of that were ex-distribtuion. Sometimes nasdaq does not correct for ex distributions on the change in price. Plains All American (PAA) was down 75 cents but they posted good earnigns after the close; beat estimates by 3 cents. Oneok LP (OKS) was down 55 cents and they too posted earnings after thc close.

Fed days are always a mess in trying to trade them. Too much volitility and hard to peg which way. After the close gold, oil and other commodities sold off again. Should be an interesting day tomorrow...actually except for maybe the day after Thanks giving they are all interesting days.

CHART WATCHING ON FED DAY

Thought it would be a good idea to take a look at some of the charts at this point that are relevant here. We will start of course with the one that looks the worst and that is...you guessed it...the AMZ MLP INDEX chart.

We continue to base build here and its at least somewhat encouraging that the index seems to be holding the 290 level which was old support before February and March did their damage. We still have not seen the moving averages cross to where the 34 is above the 89 day. But we are trying. Sentiment as measured by the posts on this board is hideous to the point of anger. We regard that as bullish.

The dow industrials chart has repaired itself quite nicely as it has built a bottom to rally off. And the moving averages are crossing and sloped positive. I am expecting the fed to do 1/4 and signal a pause. There could be a good rally off of this announcement particularly if the dollar rallies and commodities sell off on the news.

The XOI Oil index chart is a bit odd. Its been moving sideways for the last several months in a wide range and while it could be viewed as a triple top developing i'm not sold on this yet. Certainly if crude sells off we could see a trip back down to the bottom of the trading range.

Best for last is the gas index chart (XNG) which is been on a bull move with the occasional pullback and i think a selloff into the moving averages is about the worst we'll see on this one and that might be where mlps derive their support should a broader energy down move develope in the short term.


Okay now to some morning news items. Kinder Morgan Partners (KMP) is testing moving ethanol through a pipeline. There are issues doing it this way and Kinder may have a solution. So they have a vested interest in keeping Ethanol alive if it is successful. Sunoco Logistics (SXL) is buying a refinery and pipeline which will immediately add to the distribution.

Lehman is commenting on Constellation Energy Partners (CEP) by keeping it at "overweight" but knocking the target down from 30 to 25. Who cares when this one just keeps going down anyway. I think they better be clear on earnings day about what is going on in order to put a floor here and rally it back into the 20s.

Nothing else on the agenda this morning so we await the open and the fed. Crude is a little higher on a dead cat bounce. Stock futures stronger on GDP data.

Like watching paint dry today. Some movers like Atlas Pipeline Partners (APL) which is up 1 on no news and the two Hilands (HLND,HPGP) are down 1 on no news. The mlp index is down all of 0.19. All this pre fed action. Oil is down 3 dollars and nat gas is down nearly 50 cents. Its not having a big impact however on the bigger energy stocks for the most part.

EV PARTNERS BOOSTS AND

WILL BOOST AGAIN!

No surprise here as E V Partners (EVEP) goes to 62 cents on the distribution up from 60 cents as they told us before. But they are also telling us now they will boost again next quarter. Also this morning we have earnings news from Teppco (TPP) which look solid. This pretty much has been the story for the whole group with a few excecptions like Calumet (CLMT) and Cheniere (CQP). And they yields continue to remain high on a long term basis and yield spreads have only dropped slightly. So we continue to mount a very slow repair job.

Crude oil is selling off by about 1 dollar as supply concerns decline and dollar rally is putting pressure on prices. Nat gas is selling off as it corrects from a big up move yesterday when we got to an 11 handle. The dollar as we said is stronger against all major currencies as the fed meeting begins today with a decision due out tomorrow. So it may be appointment only trading until then.

Headlines as they break this morning.

One of the funniest things i've ever read...and proof that politicans especially democrats have complete and utter comtempt for the intelligence of most Americans.

No where in this manifesto do we say anything about ending the immoral ethanol supports that are converting food for fuel.

Interesting day. A firm undertone under mlps for the most part. The index is up .65 as of this post. Alliance Resource (ARLP), Alliance Resource Holdings (AHGP) Hiland Partners (HLND) and Atlas Holdings (AHD) all up about 1 point or in some cases more. Most other mlps are flat to up small fractions.

Not many on the losing side and nothing major. Market overall wants to go higher and 13000 on the dow looms on the horizon.

LOTS OF EARNINGS AND

EX- DISTRIBUTIONS

Well if you haven't sold yet you have lived to collect another distribution as a bunch of mlps go ex distribution today. Usually its the big boys that go first like Oneok (OKS). The mlp index last week closed not too far off the high for the week.

And there is some pre market reaction to earning as Enterprise (EPD) posts quarterly numbers that the early market traders liked. The stock is bidding up nearly 2 dollars in the pre market. Alliance Resource Partners (ARLP) also posts good numbers on earnings. Boardwalk (BWP) puts up earnings which include a 1 time gain. For some reason this morning none of the links to the news stories are available on Yahoo finance. Lovely isn't it.

No upgrades or downgrades this morning. Crude has just turned lower as stock futures have turned flat. Nat gas is a little higher.

Putting the chart of Eagle Rock (EROC) up this morning as it looks like not only the bottom is but there is room to rally here. Stock price looks like it wants to go higher.

Maybe we can get back to 20 one of these days.

LOTS OF DISTRIBUTION INCREASES

After the close yesterday a number of mlps announced distribution increases including this surprise from Boardwalk Partners (BWP) which boosted the payout inspite of its previously announced cost overrunns. We also have Magellan Midstream Partners raising the payout along with Magellan Holdings (MGG). Energy Transfer Partners (ETP) and Energy Transfer Equity (ETE) are lifting payouts and i love ETP's rate of .86875 cents. Talk about precision...86 and 7/8ths cents! Sempra Energy Partners (SEP) is increasing its payout as well.

I mentioned earlier this week that we need to watch any drop in crude oil as that will take energy stocks down hard and could pull us down with them. It is sad since MLPS were left completely behind in the energy stock rally and were sold off hard during the credit mess. Now we run the risk of being taken down for a run-up we never really enjoyed. But not to worry because the chairman of Nustar (NS) says crude oil will never drop in price again and the sky is the limit for the price. I still think we hit some short term top at 120 and could pull back pretty hard....maybe back below 110 or 105 in a hurry. But then again...who knows.

Early post this morning as i am working. Stock futures are higher going into the pre-market. Crude oil traded down to 114 yesterday..down 3.60 at one point before closing just over 116. Its down about 50 cents this morning in electronic trading. Gasoline is down a nickel as is nat gas. 2 year note yields continue to rise which is an indicator of an increasing appetite for risk. the dollar continues a very strong rally against the Euro. All good things. The MLP index managed to close above 290...down 1.50 ish on the day. Remember we just ran from 262 to 294 in a hurry so the pullback while annoying was not overally damaging. Still judging by the number of angry bearish posts i can't help but be optimistic. Then again that is my nature.

Working this morning so i will try and post headlines as they break.

Of course with energy stocks gettinng hammered...mlps are now going to follow...energy stocks! The mlp index is down nearly 3 points or 1%. The XOI index is down over 2 1/2%. Glory!

Calumet is down 3 and change and under 15 bucks on the distribution castration. Nustar (NS) is down 1 and change on the Morgan Stanley castration. Constellation (CEP) is down 75 cents to just above 17 because all this stock ever does is go down anyway. Coal MLPS Natural Resource (NRP) and Alliance Resource (ARLP) are both down 1 each. Magellan Midstream (MMP) is down another dollar. And of course a mile long list of fractional losers.

You can sense a certain degree of frustration here but its how they finish the day. I'm not hopeful but one never knows.

Morgan Stanley is cutting Nustar (NS) to underweight and starting Markwest (MWE) at overweight.

Nothing on the upgrade downgrade list. Constellation Partners (CEP) announces its distribution and as expected no change...but no cut!

Calumet Specialty Products (CLMT) seeing a few trades in the pre-market. Last down 1.35 at 16.99 on its 27% distribution cut. Earnings from TC Pipelines (TCLP) are out and the company calls them strong.

I took a long position in DUG on the idea that oil is about to break for a quick big correction. We'll see.

DO YOU THINK THIS CHART

WAS TRYING TO TELL US SOMETHING?

I think it was. It was screaming distribution cut. And last night Calumet Specialty Products (CLMT) did just that going from 63 to 46 cents. The company has been under tremendous pressure as rising oil prices have just squeezed this one to death.
Now there just may be a trade here as if the distribution cut has been priced in...and thats a big if....we could see this one at least stop going down especially if the oil price ever breaks...which we know that is just something that will never happen!

Meanwhile here is the Eagle Rock Energy Partners chart which is doing better although the moving averages are still in negative mode. The 34 day is beginning to slope positively so at least the repair job continues.

Linn Energy (LINE) has actually formed a pretty nice "W" bottom in here so maybe we can remove this one from the most hated mlp list. 24 has been a wall in here so we need to get through it on volume to put the bottom behind us.
Of course there is Constellation Partners (CEP) aka miserable piece of shit...according to some posters. I'm inclined to agree. 50 to 15..a bounce to 21 and now back to 17 so we are in some sort of bottoming process. I would hate to have to go back down to the 15 area. I thought there was some sort of head and shoulders bottom forming in here but that neckline is looking pretty dicey so it needs to turn higher and get back above 19 and stay there.
The company has already announced no distribution increase for the quarter...but at least they are not cutting. Very agonizing.

Hey here is some good news from Legacy Partners (LGCY) which is doing a nice 4 cent boost in the distribution.

BTW even with distribution increases we are not seeing yields spreads not dropping very much. The majors in the group continue to average a 7% yield while some of the newer growers have now gravitated to a 9-11% yield. This seems like the new norm with 300-400 basis point spreads to the 10 year.

Headlines as they break this morning. At this early hour stock futures are softer. Crude is off a few ticks. Gold is trying to hold 900. One by one commodities seem to be breaking a bit in here so i would not be surprised if we see a big drop in oil very soon. BTW if a sell off in oil is coming and oil stocks get sold; a good way to play it might be with the Power shares short oil and gas (DUG). Not a recommendation here but it is among the many tools out there where one can hedge with when times get a little volitile.

And now...a little wake up music

Here is something that doesn't happen very often. In fact except for Stargas this is the only other time that this is happened. Calumet Specialty Products (CLMT) is cutting its distribution from 63 to 45 cents. Brings it down to a 10% yield. Stock price behavior was telling us a cut was at hand. Sad times due to high crude oil prices.

Constellation Energy Partners (CEP) has fallen back into a sink hole. Its sort watching someone trying to climb a rope covered in oil. Its down to 17.60 and has given back about 1/2 of its recovery. At least Linn Energy (LINE) has held its bounce back to around 23.

MLPS as a whole not doing too much. The index is flat but there are some big movers out there. Cheniere LP (CQP) is up another 1.23 and leads the list of winners. Sunoco Logistics (SXL) is up nearly 1 on earnings.

1 point losers include Atlas Pipeline (APL) and Hiland LP (HLND) although that one is on thin volume and could easily close up later today. Fractional losers; Magellan (MMP) on the Goldman downgrade, Crosstex (XTEX) DCP Midstream (DPM) and a few others.

Some info on the Goldman downgrade of Magellan(MMP). Thank you to the poster. After reading it through you gotta love Goldman and anal-ist double speak. On the one hand they say its overvalued relative to its peers...on the other hand they leave the price target at $44 which is above where it is right now. Makes sense...doesn't it!

GOLDMAN YELLING SELL ON MAGELLAN
INERGY HIKES (again)!

Inergy Holdings (NRGP) leads the way with distribution hikes this morning making it 11 in a row. Inergy LP meanwhile makes it 26 consecutive quarters (6 1/2 yrs) of distribution hikes. Also scroll down and check last nights posts about other earnings and distribution increases. Targa Resources (NGLS) also takes its distribution higher for the quarter. More news headlines as they break.

Meanwhile Goldman Sachs is on the horn this morning as they downgrade Magellan Midstream Partners (MMP) to a sell which is something you don't see too often. They had it as a hold. The chart above shows MMP has been a pretty good relative performer and its been in a trading range between 38 and 45 for the last year or so. If i get the reasons behind the downgrade i will post. Or if any of you find out please post it in the comments section.

Earnings driving the overall market this morning. Crude is down 63 cents (which is against all natural law). Nat gas is a little lower. Stock futures a little lower.

Crosstex boosts its distribution on the LP and on the GP.....big time on the GP. Also when the head of your company dumps a whole shitload of shares...it can't be a good sign.

Martin Midstream also announces a distribution boost.

A couple of notes. First off Nustar Holdings (NSH) did not increase the distribution..i mis-read. They were referencing a year ago. Thanks to the poster for bringing that to my attention.

Another poster wants us to shout from the rooftops that Atlas Holdings made a big distribution increase...so i am...however the market may have already somewhat priced it in. Stock was up 37 cents on the news.

After the close Sunoco Logistics posted earnings and a distribution increase after the close. Numbers look very good here.

Calumet Specialty (CLMT) closed down 2.58 to an all time low of 17.96 as the unrelenting rise in crude oil prices continues to squeeze the shit of out this one. No specific news. Volume was 344k which was almost 5 times normal.

Chenere (LNG) and the MLP (CQP) were both up smartly today as they rebound from unrelenting selling over the last few weeks. No specific news here.

The mlp index closed up just under 1 point on a down market day again...relative out performance continues.

Calumet Specialty Products (which i sold in the 50s) is down nearly 2 points and with an 18 handle. No news on 70k shares. I'm not sure what is going on here. Atlas Energy Resources (ATN) boosts its distribution by 2 cents.

Dead cat bounces in Cheniere LNG (CPQ,LNG) which are both up a buck right now. Otherwise the mlp index is up 1 point and off its highs as Nustar (NS) gives the index a boost up 1.52.

Otherwise its a snooze fest.

Nustar (NS) and Nustar Holdings(NSH) put out earnings this morning and they look very good. That's one thing thats been lost in the last couple of months. Earnings for most mlps should be very good. Nustar beat earnings estimates by 27 cents! Nustar Holdings (NSH) also announces a distribution increase.