Week Thoughts: Ending Quarter on Fresh High
Midstream posted a solid end to a great month and great quarter. Midstream outperformed the S&P 500 on strong commodity prices, calm interest rates and light trading in the short week that was spring break for many northerners. Cold late March weather offered support for natural gas prices that remain in the doldrums as the heating degree days peter out.
Historically strong month of April should provide seasonal support for midstream to continue to roll absent a major disruption in the broader market. That seasonal trade is due to the generally quiet corporate period following guidance season but before 1Q earnings season, and it coincides with the run up to dividend ex-dates.