Month: January 2018

Midstream stocks resumed their elevation this week, mostly keeping up with the torrid pace of the broad market.  The S&P 500 gained another 2.2% this week (although without much help from KMI -1.3%).  Oil and natural gas prices also shot higher, helped by falling inventories and a falling U.S. dollar.   The MLP Index has gained 10% already this year, far outpacing the broader midstream universe and ahead of the S&P 500.  Year-over-year, S&P 500 remains king, up 25% and accelerating in 2018.

Midstream stocks sold off this short week, taking a breather from their sprint off the bottom.  MLPs had traded up in each of the last 5 weeks, so a pause isn’t surprising.  The MLP Index traded down the first 3 days of the week, before a reversal and positive finish Friday.

MLPs had their best week since…last week, up each day this week for another 4.6% since last Friday.  It was a fifth straight positive week, the first such streak since April 2016.  The Index is now 19% higher than the end of November recent bottom.

It was a great opening week for midstream stocks, or almost any other kind of stock (ex-utilities and REITs). MLPs have traded up for 4 consecutive weeks, the first streak of 4+ positive weeks since April 2016.  4.5% is the best week for MLPs since late last January.  MLPs are also 13.9% off the late November bottom.  The MLP Index opened with consecutive 2%+ days for just the second time ever (2009 was the other time).