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Monday, December 20, 2010


Thank God for google because now we can go back and call people on what they say in writing. 10 years ago this piece appeared in the Independent quoting scienctists from U.OF E.A. (not east Alabama) that winters and snow in Britian were soon to be a thing of the past. Thanks to Powerline for posting this. So its really only in the imagination of Britians and Europeans that they are experiencing the coldest December on record..records that in Britan go back to 1860!

But then again these bozos have already been discredited in the scientific community.

Monday morning in the days leading up to Christmas and you get the feeling that everyone is pretty much done for the year. Moves on a daily basis have been very small for the last 2 weeks and the stock market has traded in a 100 point range. MLPS on the other hand were in a very tight range until last week when bond rates took off. MLPS sold off and broke below the range. And it was disheartening that the big bond market rally Friday that took 20 basis points off bond yields did nothing to send buyers to mlp land.

Year end effects are probably working some distortion magic here as people are booking profits. Still for those thinking there could be a buying opportunity at hand might look at the following charts.
Kinder Morgan (KMP)has corrected only slightly in the pullback and they have already done their stock offering so for now the uptrend is intact.
Enterprise(EPD) is another big boy in the group and it has pulled back nicely under 40 bucks. This one has also recently done its stock offering and its pulled back into support. Enterprise is a huge chunk of the MLP index.
Nustar(NS) is interesting because it has been on a run recently as the rest of the group pulled back. Friday saw it drop nearly 3 dollars on no news. It may be just simple profit taking here although be advised that Nustar has not come to market with a stock offering in awhile but they did do an offering a number of months back with its stock price at lower levels. Seeking Alpha makes the argument that MLPS could have a strong 2011 along with other infrastructure plays. Im not 100% sold on this after 2 solid years, particularly if rates continue to rise on the long end.

Nothing happening on the news front for MLPS this morning and no upgrades or downgrades so far. Stock futures are higher ahead of the open. Crude is up and nat gas which was down overnight is now flat to a little higher. Rates are a little lower and the dolalr is up against the major currencies. BTW should point out the the weather pattern in the Midwest and Eastern US continues to indicate cold weather for the next 2 weeks or more. That should be supportive to energy prices.

Okay Christmas shopping should be rushed to completion so if you still need to get something last minute and in time to ship there is great coffee from the monks of Cody Wyoming. And also there is Amazon so you can click on the banner above or the one right here.

Your shopping through my link has paid my online bill for a couple of months and that really helps. Many thanks and i promise to stop the shamless self promotion. Oh and if you aren't shopping but want to buy me a beer and a can always hit the donate button on the side bar!!! Okay more shameless hawking!

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