Archive

Week Thoughts: Prime Conditions Prolong MLP Primacy

16Jul
The MLP Index finished the week decisively above 300, up 9.9% from its recent (6/21) low, after a 1.9% week that included a furious late Friday ramp.  Oil prices rose each day of the week, including 4 straight 1%+ days to finish the week.  MLPs resisted rallying for most of the week, but eventually relented. Just when sentiment was at its worst and

Week Thoughts: Oil Takes Another Licking, MLPs Keep on Ticking

09Jul
MLPs reversed intra-day to finish positive Friday, which when combined with outsized gains Monday, was enough to finish the week slightly positive.  That makes two straight positive weeks and two straight weeks of outperforming the S&P 500 and utilities.    MLP capital markets activity has been negligible for over a month now, which is perhaps a

Week Thoughts: Seeking a Better Half

02Jul
Sweet relief came this week in the form of 7% higher oil prices that helped MLPs break a grueling 5 week losing streak.  At 4.2%, it was the second best week of the year, a strong finish to a disappointing first half for MLPs.  MLPs have traded up 7% since their 6/21 52-week low.  Rising interest rates was problematic for utilities and the S&P 500

Week Thoughts: Friday I’m in Love

24Jun
MLPs made it a 5th straight 1%+ decline weeks, the longest such streak since October 2008, pushed lower by falling commodity prices.  MLPs have never been down 1%+ for 6 straight weeks, and the late week bounce offers hope the streak will end.   But late week hope doesn’t always carry over, MLPs have had their best day of the week on Friday each of the

Week Thoughts: Head or Gut?

18Jun
MLPs had a fourth consecutive 1%+ weekly decline, a streak that hasn’t happened for the MLP Index since October 2008.  Oil prices declined for a fourth straight week as well, big coincidence.  Both are looking a bit oversold at this point.  The trick may be in convincing Amazon that it needs to secure access to refined products for its trucks and

Week Thoughts: Sentimental-Listless

11Jun
Another deflating week in MLP land, although MLPs outperformed oil prices and finished the week on a positive note with some relief Friday.  MLPs finished down 1.1% overall, in-line with utilities.  MLPs have declined 1%+ for 3 straight weeks, which hasn’t happened since November 2015 when KMI’s leverage and dividend cut drama escalated.  On the

Week Thoughts: Washout

04Jun
The MLP index breached 300 on the downside twice and closed the week at its lowest level so far this year and lowest since 12/14/16.  MLPs have dropped 2 weeks in a row, have declined 12% from their January peak, have produced negative total return YTD, and have produced just 3.2% total return the last 12 months.  Adding insult to injury on this short but

Week Thoughts: Back to the Futures

28May
The MLP index pushed higher Monday and Tuesday to reach its highest point since 5/2, before falling back again the last 3 days of the week on weaker oil prices and due to challenge of funding a large equity deal on a Friday before a long weekend. Now that OPEC is behind us, and now that we’ve had 7 straight weekly declines in U.S. oil inventory,

Week Thoughts: Think Global, Buy Local…MLPs

21May
MLPs finished the week strong, rallying 1.8% combined on Thursday and Friday, which was just enough to climb back to even after a 1.9% drop Wednesday.  The selloff Wednesday seemed 100% based on broad stock market weakness, a frustrating headwind when oil prices have been relatively strong of late.  WTI oil futures have traded up in 8 of the last 9 days,