MASTER LIMITED PARTNERSHIPS

Monday, August 04, 2008

21 mlps were down 1 point or more...8 of those were down 1.50 or more. 4 were down 2 dollars or more. Glory!

262 held again...barely. Glory!

In all seriousness the tape in anything commodities did have the feel of someone unwinding a big position. Usually these things happen near bottoms but we have sung that song before.

3 comments:

Anonymous said...: We have been hearing about bottoms for so long that all hope is lost here.

The MLP sector is bottomless, it's lacking catalysts, everyone is already loaded to the gills, yield support doesn't matter, distribution blowouts mean nothing, earnings-who cares? There is really no reason to buy. I have averaged down so many times it hurts.

We are in a bear market and the best thing to do is stay out and preserve capital.

Every other week a fund is blowing up, some financial firm is a forced seller, a company blows up or some other mystery surfaces. Why fight against the tide? To clip a 9% yield? That yield disappears in principal before the day is over.

We are in financial hell and now the energy sector is under attack and we'll get buried along with it.

I honestly wish I never got involved in MLP's. I will clip coupon and hope to trade myself out of these things. Its just not worth it anymore.; 8/04/2008 4:31 PM
Anonymous said...: This whole meltdown also happened at same time last year. Sold out then and bought back cheaper. This time will hold.
Limit to how cheap things can go. Can't guess exact bottom to re-buy.

rrcbenjy; 8/04/2008 4:53 PM
Anonymous said...: Hedge funds gloomy on oil, CFTC data show

By Moming Zhou, MarketWatch
Last update: 1:21 p.m. EDT Aug. 4,

For the first time in 17 months, hedge funds in July made more bets on oil prices falling than rising, according to the latest government data.

Short positions from noncommercial investors, hedge funds and other large investors that don't actually take delivery of oil, surpassed long positions in July for the first month since February 2007, data from the U.S. Commodity Futures Trading Commission showed. Short positions are bets on falling prices while long positions bet on rising prices.
"We are seeing a significant retrenchment of bullish appetite among funds," said Edward Meir, an analyst at futures brokerage MF Global. "The price bias still favors the downside."
'We are seeing a significant retrenchment of bullish appetite among funds. The price bias still favors the downside.'
— Edward Meir, MF Global
Short positions surpassed long positions by 660 contracts in the week ended July 29, the CFTC reported late Friday. For the previous week, net short positions were 3,640 contracts. One contract equals 1,000 barrels of crude oil.
At the end of July 2007, when investors were betting that rising demand and limited supplies would push up oil prices, long positions had surpassed short positions by as much as 127,000 contracts. Crude jumped nearly 90% since then to a record high of $147.27 a barrel earlier this month.
Recent gloomy bets from noncommercial investors, however, helped send crude lower. Overall in July, oil fell $16 -- the biggest monthly loss on dollar terms since crude futures started trading on the New York Mercantile Exchange in 1984.
On Monday, crude futures for September delivery slumped more than $4 to below $120 a barrel for the first time in three months. See Futures Movers.
Investors increasingly are concerned that slow economic growth will cut into oil demand. The Energy Information Administration reported Wednesday that over the past four weeks, U.S. motor-gasoline demand has averaged 9.4 million barrels per day, down by 2.4% from the same period last year.; 8/04/2008 8:41 PM