Archive

Week Thoughts: Chaotic Commodities Can’t Crush MLPs

23Apr
MLPs showed resilience in the face of sharply lower commodity prices  across the board this week, declining slightly despite oil prices dropping below $50/bbl again.  That resilience was at least partially the reversal of last week’s MLP underperformance vs. strong commodity prices. Again and again throughout the week (e.g. Monday, Wednesday and

Week Thoughts: Are we There Yet?

15Apr
The glorious upward trajectory promised by eleven straight positive Aprils has yet to materialize.  MLPs dropped 1.8% this week, underperforming REITs and utilities (both positive, helped by dropping interest rates) and the S&P 500.  The positive backdrop of continued oil price strength and declining interest rates were overwhelmed by a large equity

Week Thoughts: Market Lacks, MLPs Luster

08Apr
MLPs ticked up 0.8%, beating a flattish market in a week where not much moved, including utilities and interest rates.  Commodity prices did move up, helping nudge MLPs higher and keep momentum from last week going.  Oil broke through $52.00, finishing the week on a high note, but still down 2.8% for the year.  The broad market was eerily quiet this

Week Thoughts: MLP Comfort Zone

02Apr
MLPs caught some positive oil correlation this week, bouncing back 2.1%.  MLPs finished the week/month/quarter strong with a 1.4% gain Friday.  MLPs beat the S&P 500 and utilities for the week. There’s a sappy quote I came across on the internet about comfort zone from an unknown source: “A comfort zone is a beautiful place, but nothing

Week Thoughts: Pending Catalysts

26Mar
MLPs finished the week negative overall, but showed relative strength against the broad market and energy stocks (but not against utilities). Oil prices drifted lower on an unwind of long oil bets, driven by concerns U.S. production growth is too much, raising uncertainty about the next OPEC meeting, even though its 2 months away.  Without much

Week Thoughts: Get Pain While You Wait

18Mar
MLPs made it two straight negative weeks with a 0.9% decline.  Oil prices finished up slightly on the week, stepping back from the abyss with a bullish inventory report Wednesday.  We got an oil relief rally, a FED relief rally, even a Canadian jacket company IPO.  Still, MLPs failed to attract broad-based buying.  NGL prices were down sharply, perhaps

Week Thoughts: MLPs Plan, Oil Laughs

12Mar
MLPs wilted this week, down 3% under pressure from oil’s return to the market’s front burner.  Other negative factors were rising interest rates rising and a stock market not achieving any new highs.  Oil was down more than 9% week over week, breaking below $50/bbl for the first time this year.  Natural gas crossed back onto the good side of $3.00 on

Week Thoughts: MLPs SNAP Back, Pivot

05Mar
MLPs bounced back this week, despite spiking interest rates and some oil volatility.  MLPs finished up 1.1%, riding the wave of optimism that took over the market on Wednesday following President Trump’s tempered joint session of Congress speech. No equity deals and execution of previously announced M&A also probably helped MLP

Week Thoughts: Clean Up Trades Leave MLPs Sloppy

26Feb
MLPs declined late in the week as equity issuance overwhelmed the sector.  For the week overall, MLP Index was down 2.1%, the worst week for the Index since the week preceding the election in November.  It was also the first weekly decline of more than 2% for the MLP Index so far this year.  Despite some volatility this week, volatility remains miles