Market Meltdown...But They Forgot MLP's

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A blog dedicated to the discussion of MASTER LIMITED PARTNERSHIPS.

Market Meltdown...But They Forgot MLP's

Posted on 02/28/2007 05:27 AM | Link | Post Comment

It is the day after the meltdown. So after an overnight where the world did not end we see dow futures up 110 points so there will be a bounce at the open. I would rather a down open and a climactic selloff followed by a reversal and up close but they don't always put it on a platter for you. So where to from here? Certainly one would think that if this sell off is the beginning of something long lasting we should begin to see some money coming into defensive areas (MLPs,GP's etc) where yield will offset risk. Also if you were looking to get in on any issues, opportunities have presented themselves although sometimes the door is only open for a very short period of time. One thing for sure...yesterday's action cost me all of 1/2 of 1%. Not bad for a day where the market was down nearly 5% at one point. So I recommend a deep cleansing breath and remember that we are in a very good place.

After all which is the better looking chart? We would lean to the one above and not the one below. And the index by the way can pull back to those support lines and the uptrend is still intact. And the weekly chart by the way is still locked in its uptrend.

Now for some news and we go back to last night. After the close E V Partners (EVEP) did a priviate placement of shares. This was done to reduce debt. Should be viewed as a positive but volitility rules here given market conditions. And one of the better performers in the last few months has been Buckeye Partners (BPL) which is taking advantage of the price rise by doing a stock offering. Buckeye is trading down 1.25 in the premarket. Kinder Morgan Partners (KMP) is entering the biodiesel business with a 100 million dollar investment. No upgrades or downgrades this morning. That list is relatively short this morning which is usually the case after a big selloff since no one wants to step to the plate with buy recommendations in the midst of a selloff.

More on yesterday's mess. I was a victim of the bottleneck yesterday in an odd way. I bought Williams Partners (WPZ) at the open yesterday near the low and i tried to sell it yesterday afternoon as it rallied back. Well my order was stuck in the pipeline somewhere and watched trades go off at 20 to 30 cents higher than my price. This went on for nearly 2 hours! I finally was filled at my price but frankly i feel cheated out of 20 cents. It was very frustrating indeed. I hope these guys have a handle on things today.

10 year rates are up a bit after yesterday's flight to quality took yields down to 4.50%...now at 4.55%. GDP numbers will be a player this morning. Crude collapsed down to 60 dollars last night and while its down this morning it is off that 60 dollar low. So seatbelts fastened ladies and gentlemen and let the flight to yield safety begin! I will try and post during the first half hour so we can get a sense of what is going to happen today.

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