MORNING OPEN LOOKS FIRM AS
MLPS PREPARE TO PAYOUT!
This week we will see the majority of MLPS go ex distribuitions so checks will be in the mail shortly headed for your mailbox on May 15th! Markets look okay this morning in the pre open with stock futures higher by about 4 S&P points. MLPS probably will take their cue from energy stocks as a whole and they took the lead Friday.
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For the first time since back in August of 2007 the mlp index is trading clearly above the moving averages. The 34 day moving average has completely its cross and is now in an uptrend. Notice below however the weekly charts are no where close to doing this as they are in a downtrend. The mlp index has crossed above the 89 week moving average and repair jobs have to start somewhere. The dow chart on a weekly basis still looks fairly sad.
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Finally for comparison purposes take a look at the High Yield index and notice that if you overlay it over the mlp index daily chart they match up almost tick for tick. So as credit markets slowly improve, mlps will continue to firm or at least outperform.
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