adbrite ads

Your Ad Here
Your Ad Here

tickers

$IN

amazon

Tuesday, May 17, 2011

Down nearly 6 and at the lows of the day. 350 looms.

3 comments:

Robert said...

It appears there are a few factors in play:
1: Concern that the current jawboning in DC will change the effects of MLP tax preferences. The net effects on revenue are not great enough to have an impact.
2: The breakdown of the oil sector. However the last time oil traded up to and into the 90's the MLP sector was quite strong and levels were above currents. Oil will again trade at over $100 a barrell.
3: It appears last week there were very high volume sell trades in an abbreivated time period that may well be attributed to hedge fund selling. They had been big owners
4: Shorts have taken over the market with a vengeance.

While the pressure is great the yields are still very generous and a bid will reappear at some point. With the negative outlook and actions in DC, finding the right entry point has become difficult but cash aailibility will be king in the sector.

Robert said...

Robert said...
It appears there are a few factors in play:
1: Concern that the current jawboning in DC will change the effects of MLP tax preferences. The net effects on revenue are not great enough to have an impact.
2: The breakdown of the oil sector. However the last time oil traded up to and into the 90's the MLP sector was quite strong and levels were above currents. Oil will again trade at over $100 a barrell.
3: It appears last week there were very high volume sell trades in an abbreivated time period that may well be attributed to hedge fund selling. They had been big owners
4: Shorts have taken over the market with a vengeance.

While the pressure is great the yields are still very generous and a bid will reappear at some point. With the negative outlook and actions in DC, finding the right entry point has become difficult but cash aailibility will be king in the sector.

5/17/2011 12:57 PM

Harry said...

Robert, your analysis and summary of the drop in MLPs was well presented and much appreciated. Thanks. Harry.