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:
