DID MLPS TOP OUT?

We saw mlps charge right out the gate in 2012 with a run to 400 on the index however we seemed to have hit a wall here at 397 and we are down 4 days in a row. It could be just a simple matter of a rotation being caused by the year end pile in. Or perhaps we are seeing something more important after 3 years of solid upside and market leadership. The first test comes at the rising support lines we see down around 380. Until we get there my sense is that this is just a temporary sell off we are seeing.



Citigroup chose this morning to raise price targets on a bunch of mlps including Magellan (MMP) Atlas Pipeline Partners (APL), Enbridge Energy Products (EEP) Tesoro LP (TLLP) and Spectra Energy Partners (SEP), Kinder Morgan (KMP) Plains All American (PAA) Oneok LP (OKS) and a few others. Virtually all of them are down except for Kinder which is unchanged. Usually target changes dont do much for price appreciation as they pretty much restate the obvious uptrend. So markets being efficient most of the time sell off on the move. No other important news of note on the corporate side.

Overall the market is as always Euro focused with the Euro trying to hold 1.27 this morning. The dow is down about 40 points and the nasdaq is down a couple. Energy stocks seem to be extra soft so far this morning. Chart wise we are at the absolute top of the range as the S&P is back to the highs it back in the October rally. 1292 was the wall yesterda and we are at 1287 as i type.

Natural gas is absolutely circling the drain. 3 dollars was supposed to be the absolute bottom but markets have a way of proving absolutes aren't exactly as absolute as you think. Nat gas is down 4% this morning to 2.80 as it continues on the road to being free!