What a day yesterday as MLPS at one point were down 3% or nearly 400 dow points before rallying back to a minus 6 close. The 144 day moving average is at 316 and we cut through that yesterday but at least we did not free fall to 309 which is where the 200 day moving average. That is one ugly chart so i have to wonder where we are going from here. Since the entire market is being repriced due to the credit collapse it seems we are being repriced as well. The spread between MLPS and the 10 year has widened considerably this week so we have had what one could call a painful adjustment.
Meanwhile one of yesterdays biggest losers was Oneok LP which came out with great earnings, raised guidance for the rest of the year on both earnings and distributable cash flow and the stock was ripped for nearly 5 points. Then after the close a bunch of trades crossed and brought the stock back to a less than one point loss. The reason was Citigroup which came out this morning and upgraded the stock to a buy from a hold. I also noticed some aftermarket trades at higher prices on a few other mlps like Energy Transfer (ETP) Sunoco Logisitics (SXL) and Global Partners (GLP). So depending on what happens with the employment numbers; should the market rally today i would have to imagine we are due for a nice bounce. For those of you who have been looking for a chance to buy at lower prices you have your opportunity.
Nothing else on the upgrade downgrade list. The energy complex is flat this morning. Stock futures are even as we wait for 8:30am and the 10 year is hovering near 4.79%.
joseph cioffi's Source Page - Associated Content
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