Today's volume is incredibly 22 times greater than the recent average trading volume! This is beyond belief when.....
1. you figure there's been no news other than that the 39 cent distribution program we've been getting for the past year is going to continue for now due to challenging times in the energy sector.
2. Folks who'd been expecting the company would be able to increase the distributions right away because the CEO asked this of the BOD---so we don't get all our dreams fulfilled. Boohoo!
3. There are no negatives save for the guidance which assures we will stay on the 39 cent distribution schedule throughout this year. Plus, the Grand Mesa Pipeline is operating profitably as hoped for. This is not negativity at all, it's simply establishing that expectations need to be reasonable and rational whereas expectations may be less than that.
4. And what I figure to be the real driver behind today's bullcrap:
This is what happens when frustrated high frequency trading machinery fails to instigate and now has to move more convincingly.
With a half hour of trading time remaining, 22 times normal trading volume is extraordinary, wouldn't you say? All of a sudden, forces out there are clearly unwinding with the mother of all Sundays landing her greatest punch in an effort to dislodge even the most formerly secure.
Well, I've been adding throughout the day. Today's actions are perfect if understood. I believe I do understand what's going on. In brief, NGL has done nothing to unnerve us. In fact, the company is doing just great---with coverage exceeding 1.3 times. And I see plenty of good reason to expect major reversals following today's debacle. None of what we're seeing is in any way attributable to actions taken or resulting from NGL's performance.
We are witnessing human responses to nerves being pressured by computerized programs. This is why I continue to add NGL units. And I'm now up to 9,500 NGL units, up from the 7,700 I held at the close of business last night. There's no way I could believe there'll be another opportunity of this magnitude this year in any of my picks.
