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Friday, February 04, 2011


The montly set of jobless numbers are out and are so distorted with all sorts of factors. No one believes the drop to 9%. The job growth was miniscule. There were all kinds of weather related factors. And the end result is bonds selling off and yields are now approaching 3.60 on the 10 year. Stocks are a little higher on the news and there is nothing here to really put a stop to the head of steam that has built up. MLPS are going to start to look at that rising yield. Not sure if that's today, next week or next month.

Citigroup is busy this morning raising price targets on Linn Energy(LINE), EV Partners(EVEP),Brietbrun (BBEP),Legacy Partners (LGCY), Vanguard (VNR),and Pioneer Southwest (PSE) while it cuts the target on Constellation Energy Partners (CEP). Price target moves don't usually have impact but sometimes that can give you a nice goose for a day. Martin Midstream (MMLP) is down 1 and change in premarket trading on its public offering. Spectra Energy (SEP) is going to trade on earnings news this morning as its bid up a few ticks in the premarket. Also be advised that the cycle of ex distributions is underway with Nustar (NS) and Sunoco Logistics (SXL) going ex payout today.

The charts above show the unrelenting uptrend remains intact and still no sign of even a short term top. Every time a few sellers show up there are buyers that come in and take control. No change in trend until further notice. MLPS need to take out the recent high on a closing basis and thats a tall order when your going through the ex distribution phase. We are finally clear of the breakout point in yields so if they don't sell off here..then maybe the threshold for a run away from intrasensitive stocks is somewhere closer to 4% on the 10 year. After all if it goes to 4 it only gets us back to where we were last April. Short rates are going nowhere according to the fed chief.

Crude is up and nat gas is down this morning. Nothing earth shattering occuring overseas to move markets..Egypt included. Metals are flat to a little lower and the dollar is higher right now. The open looms.


Max said...


Here's an interesting but somewhat bearish article from Seeking Alpha on the future of MLP's:

joewxman said...

thanks..posting this morning