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Monday, March 26, 2012


Sounds like something someone's mom would say! Point and Figure charts have been around for ever and they are just dependent on price and not time. Its its a pretty basic system and every once in a while its good to take a look and see what they are telling us about the markets. Like anything else along these lines its a lot of opinion and they work when they work, and they dont work when they dont work. Still the P&F charts have been steadfastly bullish on mlps for a long time now and remain so inspite of recent short term headwinds.

Of the major mlp index components the only one that i could find that is bearish is Kinder Morgan (KMP) which we all know had a lovely run to 90 before the recent pullback. Its hard for me to visualize how the mlp index gets to a 492 upside target without Kinder Morgan driving it there but it might be a divergence worth paying attention to. It could be that the stall in Kinder Morgan could be a signal that the mlp index is not going to make that 492 target.

On the other hand We have Enterprise Products Partners (EPD) which continues its march higher and is just off its 52 week high in the low 50s. No sign of a significant pullback here yet and the chart remains pretty much ok.

We could go all day with this and if you would like to, here is the link so you can check out your favorite mlp or index or whatever. One of the more interesting ones to look at is the 10 year yield which has recently given a bullish signal and target to 3.30% which is a solid point higher from here. That could be a potential headwind for mlps in the weeks to come if that plays out.

No news this morning on the corporate side and no upgrades or downgrades. Natgas btw continues to hold that 2.25 low. The p&f chart has a downside target around 1.50.