SELLOFF CONTINUES WITH NO SIGN OF A BOTTOM
THE DAILY CHART IS UGLY
THE DAILY CHART IS UGLY
THE WEEKLY CHART IS UGLY
And so it goes in MLP land. I continue to believe that hedge funds have been selling in here and i would expect this to continue through the rest of the month with any rallies met by selling. If this plays out however we could put in a meaningful bottom in here and set up for a nice rally for the forth quarter. However we are still at the mercy of the overall market and if the market breaks down after next Tuesday's fed decision we could see that 280 low of August get taken out and then we go back down to last years breakout point at 270. I would think that is a low risk proposition of occuring.
We have a deal this morning as Breitburn announces it is buying assets and recommending a big boost in the distribution. This should be a stock price mover. Nice to see another deal being done in here. No upgrades or downgrades so far this morning and no other headlines so far. Natural gas has gone above 6 dollars this morning. I'm not sure whether this has to do with tropical developements. There are potential systems out there but nothing pending short term. Looks like the bottom in the low 5's is in. Crude is flat to a little higher this morning. The 10 year is at 4.35% and stock futures start the day a little weaker.
joseph cioffi's Source Page - Associated Content
4 comments:
Many are expecting major hedge fund selling in late September. That, plus either a disappointment from the Fed (.25 Fed Funds rate reduction is already fully priced in) or a "sell the news" reaction, could make this month VERY ugly.
I am not buying anything right now because we could well get a repeat of August 6th.
Bruce Sherman
Oakland, Oregon
i won't argue with you. But it could also be sell the rumor by the news.
Its never easy.
I, for one, find it hard to believe that hedge funds are really interested in our MLP stocks. I believe they are too illiquid for their trading purposes. In other words small floats.
i know that at least one hedge fund had a very large position in Legacy Partners (LGCY)that had to sell down quite a few shares. Also a hedge fund might not hold a relatively big position but as evidenced last August 6th, when you got to sell your winners into an illiquid market, it doesn't take much to send share prices falling 3, 4 or 5 points.
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