Its hard to argue with this chart as we begin this Thursday at another all time high. Everything seems to be line with stocks rallying...energy rallying...yields on the 10 year that could not take out 4.90% and fell yesterday....excellent earnings...rising distributions. So i guess we should just enjoy the ride.
The 10 year chart above would lead me to worry. Note yields have been rising since early December and then crossed the moving averages. MLP's have shrugged this off and i think that if yields cross the 5% barrier you might start to see some pressure coming in. I think the MLP index hits 300 first but just something we should watch.
I have here the Calumet Specialty Products Partners (CLMT). I post this as an example of why i like to use the moving averages as logical entry points. The stock went ex-distribution yesterday by 60 cents and go a downgrade by Goldman Sachs. The stock closed at 45.80 on Tuesday and fell to 41 and change yesterday before bouncing back to 44. So a patient player could have made 2 quick points on this with a bit of luck. On that note i am posting the Linn Energy chart below.
This one has been a great performer and i think it has more upside although i think the easy money has been made. Still a pullback to to 31-31.50 means back up the truck for me. By the way if you use orders below the market price based on the moving average approach you have to check the chart every day since these numbers change especially when your in an uptrend.
Exxon Mobil earnings will probably dictate energy stocks today at least early on. No new this morning so far but this is an early post and no upgrades or downgrades yet. I will update as any news breaks.
joseph cioffi's Source Page - Associated Content
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