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Monday, May 16, 2011

MLPS READY FOR BREAKDOWN!


Part of me puts up a headline like that hoping im wrong but Friday's action in MLPS and in the overall market was not a good one. MLPS actually opened up over 3 points before sellers quickly gained control and finished down 1.20 which was off the lows. So we start off the week at 360 on the mlp index and we are looking to open below that this morning. 350 is beginning to loom large. The overall market is holding up better as money comes out of energy stocks.


Crude oil and gasoline line are down 1.33 and 3 cents respectively this morning. RBOB gasoline peaked at 3.405 per gallon and has come off about 35 cents. So far pump prices here in the peoples republic of the state of NY have seen gasoline come off about 15 cents from the highs of around 4.30. It should never have gotten that high anyway but that's a story for another day.

Friday's standout performer in MLP land was Atlas Pipeline Partners (APL) which was up over 4 dollars on solid earnings and the company announcing that it was doing more projects that would add to cash flow and require no new equity. Atlas Energy LP (ATLS) moved right along with it and closed up 2 dollars and change.

No news this morning on the tape but there is this Seeking Alpha story on Nustar (NS) and the insider buying that has been occuring. This time it might mean something. The stock has been a chronic underperformer among MLPS and has yet to take out its 2007 high as distribution growth has been rather stagnant.

Okay so it's Monday morning with stock, oil, and nat gas all lower on the morning. The dollar is down against most currencies and rates are flat to a touch lower.

2 comments:

flash said...

Keep calling for the breakdown--you scare the sellers into submission every time you do ;-)

Just some friendly good natured ribbing here. I enjoy and respect your work. Thought provoking.

My contribution-- look at "liquids" biased MLP's MWE, WPZ, NGLS, EPD HUge demand for Ethane and Both price AND volumes firming. All were hit hard on the oil scare, all cover there distributions by a wide margin and are being very conservative in their pricing forecasts.

joewxman said...

thanks Flash. I do have a habit of making calls that tend to go the other way. But judging from the feel of the tape..we're headed lower in mlp land!