By now I trust everyone is well aware of the carnage in not only Kinder Morgan (KMI), but in the entire MLP space. Names like Energy Transfer Equity (ETE), Williams Companies (WMB), Williams Partners (WPZ) and Plains All American Pipeline (PAA) were smashed on Monday.
But rather than focus on a single individual name, I've opted to look at the JPMorgan Alerian MLP ETN (AMJ). As you may recall, I highlighted the AMJ and its oversold Relative Strength Index (RSI) back in the Sept. 30 Trader's Notebook. At that point, AMJ's RSI was reading 16.25. And as detailed at that time (dates were provided), such low readers were extremely rare, and frequently result in a tradable bounce.
At Monday's close, AMJ's RSI was nearing 18, and while it's obviously possible that figure could slip further, previous readings in that vicinity have proven to be decent entry points for aggressive short-term bulls. A logical short-term upside target would be $27.85 (the late September swing low).
Less oily, but equally ugly, is the chart of Chipotle Mexican Grill (CMG). Setting the company's E.coli issues aside, I would strongly suggest long-term holders study the stock's weekly chart. While a short-term bounce may be in the cards, the recent break of $600 leads me to believe this stock is headed lower. Stick this one in the "do not touch" pile.
Any trading or volume profile related questions can be posted in the comments section below, emailed to me at email@example.com or posted to my twitter feed @ByrneRWS.