GLOBAL RATE CUT!
The cry for a global coordinated rate cut was loud and clear. A 50 basis point rate cut was announced at 7am by the US, Canada, Europe, and others. The market reaction was interesting as S&P futures went from -28 to +30 on the announcement...then they sold down to only +5 and now we are slowly building back to +18 as of this early post. So there are skeptics out there which is good. Kids if this can't give us at least a one day bounce then we should just hang it up.
MLPS are going to move with the markets so look for them to open higher. Beyond that its anyone's guess. The energy complex which has been moving in line with the markets are down this morning but off the lows. Gasoline futures were trading with a 1 handle for the first time in what seems since the reign of Nero! I would love to play this potential rally today but the market has sucked my cash down the drain along with everyone elses. No corporate developements and nothing yet on the upgrade downgrade list.
Frankly i think today has the potential to be the scariest day yet; if the markets fail to rally on this rate cut then as i said earlier...it may very well be over. But on the otherhand maybe its that feeling in and of itself that will bring the buyers back in.
The clock is ticking!
joseph cioffi's Source Page - Associated Content
15 comments:
We're in for some sort of rally here. Now markets will be spending the next year tying to figure out if we're going into a recession or depression.
Then if a recession, will it long and deep?
If the recession ebbs,
when there are signs of recovery, some will talk of a "Double Dip" recession.
It's going to be tough going for quite a while imho.
HS
The last rally lasted until 10.00 o'clock.
This may be a rally that failed in pre-market.
HS
FWIW,
EV Energy Partners L.P. (EVEP): CEO, Director John B Walker Bought 16,100 Shares
CEO, Director of EV Energy Partners L.P. (EVEP) John B Walker bought 16,100 shares on 09/19/2008 at an average price of $19.36. EV Energy Partners is an upstream Master Limited Partnership focused on acquiring and operating oil and gas properties within the continental United States . EV Energy Partners L.P. has a market cap of $290.03 million, a P/S ratio of 1.69 and a dividend yield of EV Energy Partners L.P. 13.3%.
EVEP recently announced a second-quarter loss, which was caused by bad hedges and surpassed sales. The company announced a loss of $97.5 million, or $6.51 per share, compared with $11.7 million, or 93 cents per share a year ago. Shares fell 5.2 percent (about $1.34) on the news.
EVEP’s Senior Vice President Kathryn S MacAskie bought 3000 shares of the company at an average price of $17.34 on 2008-09-17.
Reading tee leaves
Are the sellers of MLPs ever going to go away?
I was looking at OCT SPY options for the strike price of 101 when spy was 101.07
the calls were 4.55 bid 4.65 asked
the puts were 4.30 bid 4.35 asked
Amazing!
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There was some news on Bloomberg radio that GE + AXP
were able to reduce the rate that they have to pay for overnight money.
This might be the begining of real evidence that the FED's action to pay interest on bank deposits, and the Fed's intention to buy commercial paper is working to unfreeze credit markets.
This market needs to take the real possiblity of depression off the table, to work out a bottom.
As for MLPs, they will stabilize + Rally imho when the market determines that the risk of them not getting credit at a reasonable price is taken off the table.
HS
AMZ 156.50!!! -20 points!!! 12%!!!
MLPs have performed terribly. You could not have picked a worse pile of shit than these things. Daily double digit destruction(DDDD).
The AMZ has lost 34% in 5 days!!!
Thinly traded stocks suffer the worst in any big bear market. They can also rally the fastest once sentiment turns. People just want out.Period. The good news will be when we get to 50% yields, then we can get our money back in two years. Just joking.
I saw on another blog that margin requirements are being raised by certain firms. Anyone hear anything about this? This could be the cause of todays volume.
S&P -1% Today
AMZ -14% Today
What the F*CK???
This is the worse wipe out I have ever seen in any sector. Many MLPs are down over 20% today. Examples EEP,MWE, BPL.
Has someone discover that MLPs cause cancer?
Is anyone aware of any MLP announcing anything bad?
MLPs are definitely the worst performing sector that I am tracking today and for the last week. The sector is just a graveyard.
We are either going to see mass defaults and backruptcies in the space or these things are the buy of a lifetime.
Unfortunately I am loaded with them and down 40% YTD. I never owned an MLP until about 9 months ago. I wish I never ventured into these things.
How the fuck can the MLPs be this bad? It is just a total destruction of wealth. We have lost a decades worth of price gains in about 15 days.
The disgusting thing is that nobody from any of the MLPs comes out and defends the sector.
How can the GP's just sit there and do nothing? They should just start scooping up shares and retiring debt. Its absurd to pay out 20% when you can keep that money for yourself.
"The disgusting thing is that nobody from any of the MLPs comes out and defends the sector."
Actually many MLPS have seen insiders scooping up shares on the way down. Usually money talks and bullshit walks. However its really about credit and the aftermath of Lehman.
Mlps are discounting the end of western civilization. The good news is that it can only happen once.
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