Two of the biggest stories of the cycle are converging on the same trade.
The Iran conflict reminded the world that energy security isn't optional, and the AI buildout is now pulling pipeline companies directly into data center power, with billions committed to building gas-fired plants on site.
War and AI don't agree on much, but they both need gas, and gas needs pipes.
Today's standout:
The MLP & Energy Infrastructure ETF $MLPX is currently exhibiting a long-term squeeze score of 95.
Here’s what the chart looks like:
The MLPX is coiling in a tight continuation pattern at fresh highs after completing a multi-year reversal base.
Most energy infrastructure and MLPs look something like this. A big collapse during the shale revolution in the mid 2010s, followed by a second extreme blow during Covid, reaching exhaustion and then a steady secular uptrend. Along the way, price has corrected, but mainly through time.
Right now, volatility on the Weekly Strazza Indicator has compressed into a tight range, signaling momentum's been reset for the next directional move.
A breakout above the upper bounds of the flag could ignite the next leg higher in one of the strongest trends anywhere in the market.
