MASTER LIMITED PARTNERSHIPS

Wednesday, July 16, 2008

Anything that has energy attached to it is in free fall right now. Oil has finally broken that uptrend line at 110 on the USO (136 ISH on Crude) and has imploded after the weekly inventory numbers. The 262 retest is underway with the MLP index down nearly 3 points.

What a mess. Day low is 262.67. Dow up 104. With the sell off in energy stocks even the refiners which were up nicely have come off their highs. Exxon traded under 80 briefly. At some point MLPS should separate from the others. The Double Short oil and gas (DUG) is up 2 and near 35. At least that hedge has helped considerably.

7 comments:

Anonymous said...: AMZ is meaningless. I would bet that the the average MLP is down about 15% or more YTD.

The sector is rotten and will get pulled down with the oil complex. Too many amateurs involved in the sector and they will "shoot first and ask questions later."; 7/16/2008 11:10 AM
Anonymous said...: I agree it's frustrating. I'm losing my butt just like every other MLP fan. But... but... the fundamentals are way too powerful to be ignored forever. If there are lessons in any of this it is to a) stay focused on the bigger long-term picture, b) tune out the knee-jerk reactionaries that plague every sector at one time or another, and c) always keep at least some of your powder dry for phenomenal buying opportunities... like right now.

Like the late, great John Templeton advised repeatedly throughout his brilliant career, the best investment opportunities always present themselves when pessimism is the greatest.; 7/16/2008 11:38 AM
Anonymous said...: Is anyone worried ETE hasn't announced their distribution? ETP and ETE always report on the same day...; 7/16/2008 12:14 PM
Anonymous said...: I'm not worried at all. ETP just did a secondary.; 7/16/2008 12:21 PM
Anonymous said...: This is just a slaughter today...; 7/16/2008 12:22 PM
Anonymous said...: the most hated group of all

mlp

in the pipe line toilet; 7/16/2008 12:25 PM
Anonymous said...: ETE's distribution depends on how many ETP units are currently outstanding. Since ETP's offering has not closed yet, ETE is waiting for ETP's outstanding unit count to get finalized.

Hate to dispell some of the doom-and-gloom.; 7/16/2008 1:02 PM