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Wednesday, April 18, 2012


MLP leader Kinder Morgan (KMP) will be putting up its quarterly earnings after the close today and we will probably get the usual distribution increase that comes every quarter from the big daddy in MLP land. Seeking Alpha has a piece on Kinder with regards to their distributable cash flow. Its an interesting piece in that the writer concludes that at some point Kinder Morgan may simplify its collection of interests and stocks (KMR,KMP,KMI,EPB) ala Enterprise Products Partners (EPD).

Markets rebounded yesterday and so did MLPS but you have to wonder whether it was just a one day wonder given futures are softer today ahead of the open. MLPS rebounded yesterday but the chart has that feel that the top building process continues. The 200 day moving average continues to hold at 380.06. That to me is the line in the sand. The dow chart has turned sideways and i think that a break by mlps could be a sign that the market rally may have run its course.
What has not run its course is the bear market in natural gas as we are now solidly under 2 bucks and no sign of any meaningful bottom. In fact the bears are so numerous in nat gas that we may have to look for some sort of climax selling event that might finally signal a tradeable bottom. The decline here has been nothing short of merciless.

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