Okay that's a bit of a broad statement but clearly some MLPS have made some sort of a bottom. The overall index continues to form some sort of base in here bordered by 258ish @ the bottom and 275 ish @ the top. Now please bare in mind if the world completely falls apart that bottom may be suspect. But if it comes out it will be in conditions where everything else gets really taken out and shot.
The "V" shaped bottom got us only bear market rallies in the past which has led to lower lows. The "W" bottom is more complex and in my view has more value. Buckeye Partners (BPL) has rallied nicely off its "W" bottom.
Oneok LP (OKS) has actually gapped up above its downtrending moving averages which is a very bullish sign in here. The next step is for those averages to turn to a positive slope and have the stock price pullback in for a support test. Note the last time that happened a few months ago led to failure.
This morning we have 2 factors at play as crude oil is down but well off its lows. Its responding to a stronger dollar. Natural Gas meanwhile is up 20 cents as it reacts to Hurricane Gustav
The National Hurricane Center forecast takes this into the Gulf Of Mexico as a Category 3 100 knot major hurricane. This path would put it on a direct collision course to where the vast majority of gulf rigs and nat gas lines are located. But often times the market figures this out ahead of time...rallies on the idea that the entire Gulf of Mexico gets wiped out...and then sells off when ultimately the damage is no where near what was forecast. A few months ago during the crude oil mania we'd be seeing a 10 dollar up day on crude. Instead the global slowdown and the rallying dollar has become the dominating market factor. All news now gets spun bearishly.
This morning we have no corporate developemets to speak of and no upgrades or downgrades. Market volume has been almost non existent and i would expect more of the same vacation week volume today. Yesterday's performance by the group was not bad considering a 2% decline of the overall tape and a sell off again in bigger energy stocks.
joseph cioffi's Source Page - Associated Content
4 comments:
Has anyone been able to figure out if Jerry "Johnny" Cash stole the money from QRCP or QELP? The press release seems to lean towards QRCP being the victim. I assume the company has insurance to cover the loss. I would also assume that the co will sue him for recovery.
Anyone following this story?
GPs are not participating in the rally at all. Today: BGH, ETE, AHD, NSH and MGG are all red, while their MLP brothers are steady moving up.
Regarding GPs, it seems the market is valuing yield and not growth. As for me, I am using this opportunity to shift into GPs, hoping to enjoy many, many years of distribution growth.
Bruce Sherman
Oakland, Oregon
Yield vs. growth. Bruce
"A bird in the hand is worth twoo in the bush"
rrcbenjy
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