HEY...ITS ALL RELATIVE
Of course its all about losing less and from that metric....we are! I post here the 5 day and 3 month chart and notice the very wide gap that has developed between mlps and the s&p 500. We are down about 2% in the last 5 days and the s&p is down over 6%. I think this is a significant developement here. We need to watch this carefully especially on the next rally when it comes. It could be....i want to emphasise could be the sign that mlps are emerging as a leadership group.
The 3 month comparison shows the cross occured around year end. I am noticing that the stronger mlps are holding well above their October November lows which is a good sign. We certainly have the issue of dealing with those mlps whose cuts are in jeopardy. I am waiting to see what happens when one of them cuts. What will the stock price reaction be? Is it priced it?
Stocks are cautious this morning as JPM Morgan announces it actually made 7 cents a share last quarter vs a zero estimate. The market was down 250 on the dow yesterday and futures are a touch lower this morning. Crude is up this morning and we get nat gas numbers later this morning. Nothing on the upgrade downgrade list so far.
Snowing outside my window this morning with a temperature of 19.The arctic is a nice place!
joseph cioffi's Source Page - Associated Content
2 comments:
NY Times article about how oil storage tanks are brimming and tankers are being used to store oil. I'd guess those MLP's that have a large storage component in their operations should be at an advantage. Such as GEL, BPL, etc.?
Reading tee Leaves
Good call, Joe. The S&P/MLP spread is impressive. And, so is the yield spread of treauries to MLPs.
For what it's worth, in my opinion the trade of 2009 is to load up on MLPs and short the living hell out of T-Bonds (using TBT).
Lee
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