I'm a novice when it comes to candlestick charts but that hammer formation on the chart that occured Friday could be signalling a trend change. We tend to lag overall trends when they begin or end so it probably makes some sense that if the overall market is in some sort of short term rally mode we will begin to play some catch-up so i'm guardedly optimistic on an MLP rally today.
I would like to see some basing action develope on the chart but you don't always get what you want.
Some upgrade/downgrade action this morning as Wachovia is upgrading Williams Partners (WPZ) to outperform from market perform. Citigroup downgrades Constellation Energy Partners (CEP) to hold from buy. All three houses with opinions on CEP have now downgraded so there is no one left to downgrade.
Earnings this morning from Regency Partners (RGNC) which have all kinds of distortions in them due to asset purchases etc. Earnings are due today from Inergy LP (NRGY), Markwest (MWE) E V Partners (EVEP) and Energy Transfer Partners (ETP) and i'll post the links as they announce.
Euro got to 1.49ish overnight...around 1.50 this morning as the dollar continues to get attention. Crude is up 1.25 this morning and so is nat gas after another selloff last week. Stock futures are a little weaker but not by much. Looks like energy stocks should have a firm open this morning so lets get this new week underway.
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9 comments:
one thing is for sure,
we have been getting hammered
The r-squared of the AMZ index and corporate credit spreads is around .8
It seems we get depressed when S&P's are up and MLP's are down but it is credit spreads that are driving MLP performance most of the time.
I think this high correlation make sense since MLP's are all about growing distributions and to do that they must continually access the capital markets. Credit spreads are our best gauge of the ability of companies to raise capital.
Spreads are close to all time wides vs UST's. As I posted last week GP spreads vs UST are at all time wides.
Mr. P
You have to love the ANALysts. They loved CEP at 40 and now they hate it at 15.
How do these buffoons manage to keep their jobs?
hi dreiser 139 here
its been obvious for quite a while that mlps are not an asset class that street likes or wants
u have alternatives
add to positions
hold or sell
if u need losses for cap gains then sell and reposition
dont blame analysts for anything
most people im sure on this board never vfollow them
if u r like me just hold for distribution.
however if fed starts raising rates these mlps will go down even further.
no one knows when their rise may occur if at all
good luck to all and joe once again thxs for this forum.
best mlp blog on the net
As usual Dow starts climbing and MLP's start turning lower...just another day in the salt mines...
dreiser 139: i agree with you. mlps are an abandoned asset class.
nobody gives a damn about the yield or the value in the space. i own mlps and will continue to clip coupon. hopefully we can get a rebound in some of our principal loss.
The beatings will continue until morale improves...
Hello the market is at lower levels right now any stock that beats + raises forward guidance is a buy. (at a good price of course)
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