Merrill Lynch Note To Clients: ‘Buy The Dip’

Buy the dip, because it may turn out to be the biggest dip ever!

From Bank of Countrywide Lynch’s Fred Batoua:

“S&P futures getting hit hard as Middle East turbulence starts to impact crude  price…March WTI contract expires today & seen huge short covering…we have  seen buy the dip mentality in S&P futures, 6pts off lows of 1320…near-term  though feel we are due a pause cautious & could retest 50 dma (1283)…last wk  the FMS highlighted that cash balances back at 3.5%, triggering a “sell” signal that on average is followed by ~6.2% move lower over next 4 wks…but  also worth noting that at 14x ’11E EPS the S&P is still below 50 yr ave of  15x…also the doubling since March ’09 is below the 62% move higher seen in  the 2yr’s following a bear market….so BUY the dip

At least he didn’t say “fucking”

Submitted by Tyler Durden on 02/22/2011 09:25 -0500

Source: ZeroHedge

Here is what you should really do:

Physical silver!

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