MASTER LIMITED PARTNERSHIPS

Friday, September 05, 2008

If there is any consolation...i've noticed a number of mlps like NS,BPL,MMP,OKS,NSH,ETP,HEP,KMP, and a few others that are not making new 52 week lows in here as the index comes down to a few ticks above its trading low. That at least is a small bullish divergence.

But it could all mean crap...we'll see. Bank stocks are rallying in here as the dow cuts its losses.

7 comments:

Anonymous said...: I am not a chartist, but I have done my share of technical analysis watching over the years. When an index declines with as much momentum through moving averages as the AMZ has over the last week, it is never a good sign. I look for lower prices, hopefully not at the same rate of descent, but lower nonetheless. It makes no sense, but when people make really bad decisions about how to deploy excess liquidity, we are bound to suffer in the unwinding of it and that is what's happening. And we are still in the middle of it.

Steve; 9/05/2008 1:21 PM
Anonymous said...: This is just a slaughter. We would have been better off buying banks over the last six months. There is no positive way to spin this decline. Who gives a damn about yield when you lose 4% a day?; 9/05/2008 1:31 PM
Anonymous said...: These damn forced sellers never seem to stop. Where is the value 11%, 12%, 15%???; 9/05/2008 1:57 PM
Anonymous said...: "This is just a slaughter. We would have been better off buying banks over the last six months. There is no positive way to spin this decline. Who gives a damn about yield when you lose 4% a day?"

Calm down. You can't be selective about time periods. Yes, banks have rallied over the last 6 months, but take a look at them over the last year, 18 months etc. Plus how many banks have cut or eliminated their dividends? Answer: Lots of them.

Meanwhile, MLPs keep GROWING their distributions. One day unit prices will recover. In the meantime, you continue to enjoy the income. Moreover, unless you sell now, you haven't "lost" a cent.

If you are a long-term investor for whom a reliable, growing income stream is important, you should thank God that you didn't buy banks (as I did).

If you are a short term trader trying to time the market and make quick buck in MLPs, then be adult enough to accept the risks you have taken.

Bruce Sherman
Oakland, Oregon; 9/05/2008 1:58 PM
Anonymous said...: Does APL ever go up?; 9/05/2008 2:04 PM
Anonymous said...: I thought things didn't go down forever....but I guess they do.; 9/05/2008 2:13 PM
Anonymous said...: Well stated Bruce. I don't get it when people use this board to whine. Not to sound like Phil Graham, but get over it.; 9/05/2008 3:08 PM