Wednesday, July 21, 2010

The Pipelines are Pumping...

I won't even try to predict the price of Oil or other Carbon Products. What I would rather do is follow the gobs of money that know better. The Equity Market has been taking its daily drubbing and I wanted to see what was running counter to the market trend.

Pipelines MMP 7-20-10

I watch the top 3000 stocks with listed options in the Bloomberg Terminal. I am using a View from the Aqumin View Library called "5 Day Daily Value vs 3 Month Daily Value." You simply click the button and this View appears for your selected universe of stocks while it gets the appropriate data from your Bloomberg Terminal. Very Easy. Look for tall green buildings which signify Consecutive Days Up, and the 5 Day Average Daily Value of the name traded are greater than the 3 Month Average Daily Value. Two Industry Groups stood out on the Landscape, indicating lots of positive action over the last few days, Pipelines and Debt Funds. I chose Pipelines because Magellan Midstream Partners LP (MMP) stood out the most overall (tall, deep green color), and was trading 3.5x its 3 Month Average Value over the last 5 days. The tall red ones are up on very light volume (below 3 month average actually). From experience I discount those because not a lot is trading and they move in a whisp.

In general over the last month MMP has shrugged off the market's malaise. Someone thinks they know where MMP is going in the months ahead.

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