The oil and gas index broke down yesterday and should open this morning below its 89 day moving average. Bearish for big energy in my view.
Btw for the MLP index the closing low is 266.01 and the intra day low is 262.18.
Tuesday, July 08, 2008
Still haven't broken that uptrend on USO (CRUDE) but who knows..maybe a challenge today?
The oil and gas index broke down yesterday and should open this morning below its 89 day moving average. Bearish for big energy in my view.
Btw for the MLP index the closing low is 266.01 and the intra day low is 262.18.
The oil and gas index broke down yesterday and should open this morning below its 89 day moving average. Bearish for big energy in my view.
Btw for the MLP index the closing low is 266.01 and the intra day low is 262.18.
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8 comments:
There may not be fear and panic in the general market, but there is definitely fear and panic in MLP's.
HEP is down about 15% in 3 trading days, BPL never has an uptick, the E&P's are sold endlessly, MMP was -11% at the open today, etc, etc.
We have to be getting close to an inflection point soon. Yields are too attractive, MLP's own hard assets (not paper), they are very transparent and earnings should hold up. I would also add that we will all be getting a PPI bump in the neighborhood of 6-7% (maybe more as PPI is a rapidly moving target)this month.
Negative years are rare in MLP's as yield support generally keeps things from getting too out of hand.
Mr. Pipes
volumes are a joke, HEP -3% on 3000 shares, SXL -2% on 5000 shares, BGH -3% on 7400 shares. alot of panic selling. must be some margin selling.
Good post, Mr. Pipes. By "negative yields are rare in MLPs...," do you mean total return or price only?
The selloff in the E&P's is just plain ignorant. The majority of production (70-80%) is hedged out for 2-3 years. Do the people trading these have any idea what an MLP is?
mlpsrgood4u:
Negative "years" are rare. That is not to say we can't have a negative year (we are well on our way), but if you take the total return: Price and Yield we can absorb more shock than most equity-like investments.
Mr. P
BPL was 46 8 DAYS ago, it is now approaching 39. What the hell is going on? I have BPL paying $3.83 next year, that is 9.82% yield. This is ridiculous.
Am I missing something?
I have bought a fair bit the last few days, mostly averaging down. The yields are too attractive to ignore. I bought NGLS, BPL, CEP, QELP, ETE and SXL.
Mr. Pipes...
I misquoted your "years" for "yields," but I actually understood you to say "years;" just a hasty mistype. Anyway, thanks for the response. You are saying that negative years are rare in MLPs when factored for total return.
A look at a long term chart of a basket of MLPs is good medicine for times like these. This too shall pass...
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