Is the Run Up in MLPs Over?

Joseph Cioffi |

Notice here that the Dow Industrials have been on what is simply a trendline rally along the 200-day moving average. The index dropped down to the 200-day yesterday only to bounce a little in the last hour. It's hard to imagine that the overall market is going to hold up and if the 200-day breaks down in the next few days, don’t be surprised if MLPs begin to pull back. And that pullback could accelerate once the the companies go ex-distribution in the next week and a half. It will be a long three months until the next payout comes.

Alerian Index AMZ 7-24-12INDU 7-24-12

Looking back to the 10-year chart, one has to wonder if the bond markets aren’t screaming deflation at the top of their lungs. And by the way, it doesn’t help matters any that even some of the more defensive groups in the stock market are starting to show some signs of weakness. If the yield is destined to fall down to 1 percent, it take all markets down with it.

TNX 7-24-12

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
WPCS WPCS International Incorporated 1.30 0.00 0.08 10,229

Comments

Emerging Growth

Invictus MD Strategies Corp.

Invictus MD targets companies with proven brands, strong customer focus, and significant growth potential. We not only provide capital to meet these objectives but also years of management experience from…

Private Markets

BioSculpture Technology, Inc.

BioSculpture Technology, Inc. (“BST”) is a commercial-stage medical device manufacturer of liposuction surgical instruments for surgeons. It offers the FDA-cleared Twin Cannula Assisted Liposuction ("TCAL") Airbrush Liposculptor IIIntellimotion® controllers, Airbrush®…

Uber

Uber connects riders with safe, reliable, convenient transportation providers at a variety of price-points in cities around the world. Uber makes money from charging their drivers 20% of the fare…