Bernstein, a subsidiary of AllianceBernstein, may be bullish on a some of the master limited partnerships it recently initiated coverage on, but I'm not.
Bernstein rated three of the MLPs, including Williams Companies(WMB) - Get Report , outperfom, but I didn't find a single one attractive from the long side. In fact, two of them -- Sunoco Logistics Partners (SXL) and Cheniere Energy(LNG) - Get Report -- are actually candidates for sale. Bernstein rated Cheniere Energy market perform and Sunoco Logistics Partners underperform.
Here is my technical analysis on Sunoco Logistics and Cheniere.
Sunoco Logistics Partners
Sunoco Logistics Partners had lows in January and February. Prices rallied in two waves higher, but the on-balance-volume , or OBV, line was flat during the rally. Buyers of Sunoco have not shown up for class. There is a bearish divergence between the higher highs in price and weaker momentum studies.
I would look for a test and break of the 50-day simple moving average line as prices are below the 200-day average line. SXL could work down into the $25-to-$20 area in the weeks ahead.
In this chart of Cheniere Energy(LNG) - Get Report , we can see a February low and a weak rally. The OBV line is flat, and you can see a weaker momentum reading below the April high vs. the February high. Prices of Cheniere are already below the 50-day and 200-day moving averages, and we could see the stock retreat into the $30-to-low-$20s area in the weeks ahead.