Profit-Taking in Caribou Coffee, Kinder Morgan Boosts Short-Term Edges

If you’ve been waiting for an opportunity to add an energy trust to your portfolio, then your moment may right around the corner.

Profit-taking in master limited partnerships like Kinder Morgan Energy Partners LP (NYSE: KMP) has taken the stock lower for four days in a row heading into trading on Wednesday, including a drop of nearly 2% on Tuesday. This selling has put KMP in technically oversold territory for the second time in a week, and helped the stock earn a short-term, positive edge of more than half a percent. Kinder Morgan Energy Partners LP is set to open on Wednesday with neutral, 6 out of 10, ratings.

Also pulling back among the pipeline stocks are Plains All American Pipeline (NYSE: PAA), which just broke down below a short-term trading range above the 200-day moving average, to finish technically oversold and lower for a second day in a row.

Elsewhere in the stock market, shares of Caribou Coffee Company (NASDAQ: CBOU) pulled back by over half a percent on Tuesday, finishing lower for a third day in a row. The stock was trading at new, 52-week highs as recently as mid-February, but is now on the outskirts of technically oversold territory after retreating to new, two-week lows for a second consecutive session.

The selling in CBOU takes the stock below a short-term trading range during which the stock was oversold for much of the time (late February). Compare the trading in Caribou Coffee to that of Peet’s Coffee & Tea (NASDAQ: PEET) which has finished higher for six days in a row, closing short-term overbought for the last four.

Caribou Coffee Company earned a one-point upgrade intraday on Tuesday, and is set to begin trading Wednesday morning with a 7 out of 10 rating, a rating that puts CBOU at the upper end of our neutral range. The stock has a positive edge in the short-term of more than half a percent.

By the way, a few weeks ago we took a look at the stocks of auto parts companies like Autozone (NYSE: AZO) and Genuine Parts Co (NYSE: GPC) (see Driving Opportunities Inside the Auto Parts Sector). Since rallying to new, 52-week highs in late February, shares of another auto parts company, Monro Muffler Brake Inc. (NASDAQ: MNRO) have been selling off with increasing intensity. Down four in a row ahead of trading on Wednesday, MNRO is now technically oversold for the first time since the beginning of the year, and has positive edge in the short-term of less than half a percent.

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David Penn is Editor in Chief of