Enterprise Products Partners is a master limited partnership that transports and processes natural gas, natural gas liquids, crude oil, refined products, and petrochemicals. It is one of the largest midstream companies, with operations servicing most producing regions in the Lower 48 states. Enterprise is particularly dominant in the NGL market and is one of the few MLPs that provide midstream services across the full hydrocarbon value chain.

Value stocks -- a market segment that includes high-yield stocks -- outperformed growth stocks in 2022. That's a recent rarity, as for the past decade-plus, the performance record has favored growth. But in 2022, The rollout of COVID-19 vaccines gave a lift to some of the cyclical companies (energy and regional banks) that had lagged in recent quarters, and value stocks outpaced growth stocks that year. While growth stocks have retaken the lead since 2023, the Federal Reserve continues to keep interest rates high to fend off inflation. This could possibly cap multiple expansion for growth companies in coming quarters. In any event, the value sector is the place to achieve income.

After retracing 38.2% of its rally from April until August 5, the iShares 20+ Year Treasury Bond (TLT $97.53) continues to trace out what appears to be a bullish pennant formation. Price action along the entire yield curve has been subdued of late as the market awaits additional data before its next move. In the near term, chart resistance from the recent high is up at $100. Just below current levels, chart support and the rising 50-day exponential moving average both lie in the $94/$95 zone, and a 50% give-back comes in at $93. Trendline support off the lows since April sits at $94 looking out a week, with a 61.8% retracement near $91.50. Besides the bullish short-term chart pattern (as pennants and flags are usually continuation formations that resolve themselves in the direction of the prior move), there are additional factors that spark our interest. We really like when multiple pieces of technical data line up, this as it raises the probability that our call will be correct. The COT data toward the two-, five-, and 10-year Treasuries are all bullish -- with the smart-money commercial hedgers net bullish their futures positions by a large margin, while the large speculators (hedge funds) are net short futures to a large degree. Sentiment toward the five- and 10-year Treasury is very bearish despite the four-month rally. Neither the COT data nor sentiment is doing what it usually does, as the COT data generally will get more bearish as prices rise and sentiment will get more bullish as prices rise. This combination certainly leans towards more gains in bond prices. (Mark Arbeter, CMT)

Enterprise Products Partners is a master limited partnership that transports and processes natural gas, natural gas liquids, crude oil, refined products, and petrochemicals. It is one of the largest midstream companies, with operations servicing most producing regions in the Lower 48 states. Enterprise is particularly dominant in the NGL market and is one of the few MLPs that provide midstream services across the full hydrocarbon value chain.