Right before electronic trading began last night the mid afternoon computer model package from the National Weather Service pretty much confirmed that colder weather is poised to spread across the US beginning late this week in the west and early next week in the east and that the cold weather could stay for awhile. Natural gas opened up 21 cents at 6pm last night and the rally is extending this morning. Crude Oil also opened higher by a few pennies and is now up nearly a dollar. So the turn that began Friday in big energy stocks should spread out today. Remember that even though most MLPS really are not dependant on the price of the commodities, investor perceptions often don't discriminate and when they are selling energy they are selling anything that has anything remotely to do with energy. That said i think we should have a good start this morning.
The daily chart shows the MLP index sitting right in the moving average support zone so this certainly could be a good place to bottom and begin a run back to new all time highs. I think the weekly chart supports the idea that we are not done with the upleg that began with the breakout late September 2006.
Meanwhile this morning there is no corporate news and nothing on the upgrade/downgrade list...at least so far. So letus begin trading this morning and i will revisit the situation after the open. Lin Energy should be coming out with distribution announcement soon if you follow past announcement dates. Remember 2.08 is a lock for this quarter and 2.28 annual for Q1.
joseph cioffi's Source Page - Associated Content
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