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Merrill Lynch Note To Clients: "Buy The Dip"
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"
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How much do they charge for this "premium service"?
That Series 66 must come in really handy...
Merrill Lynch, my former employer... :(
When JPM took over Bank One Sec I took my best clients and left, best decision of my entire professional life! Fuck the Banchero Trash!
so far it's
Merrill Lynch 1 - Non-Believers in Buy-The-Dip 0
Hey Frenchie how does it look now? Wait till EOD. DOW +52
it's going fine thanks; i'm a short term trader so bought this morning at last week's support at 1322 and out for 9 points; buy the dips until it hurts is still the moto;
i agree that the tide will eventually turn but this is what stops are for;
x times profitable trades buying the dips vs the odd one(s) when the market goes down is a lot more profitable than ...
x times trying to pick up the top
simple math really: trading is not about being right, it's about being on the same side as those consistently right; and for the record, i agree that these markets are a joke and that the fundamentals as detailed by ZH day-in day-out do not equal to S&P at 1330;
If we close green today, that is an absolute indicator of just how sick and broken this market is.
If we don't close -2.5% on the S&P...i will be disappoint. And i just looked (time stamp) but looks a upturn just below the opening low. (what a joke this market is if the turn was real)
It has become so easy....
That is exactly when it reverses.
The TBTF trading desks surely see the profits that can be made if they fleece all the longs. Held the mkts right where they wanted them through Feb OpExp. Could make some serious coin pulling it back several percent and have a lot of fun trapping the BTFDers.
Once everyone knows the strategy, the strategy changes. Merrill is probably just collecting more victims.
... nor did he call his clients "fucking idiots"
Not much else to say here other than, who needs free markets when you can BTFDYFI.
Do they charge more if you ask for the "fucking" with?
THAT always costs more.
The fucking comes complimentary. You have to pay extra for a donut to sit on afterwards though...
At least he didn't say "BTFD bitches!"
Wrong, wrong, wrong. It's "Buy The Fucking Dip".
Must Zero Hedge correct everything that comes across its desk?
CD,
Tyler commented "At least he didn't say "fucking"...
DavidC
I was simply adding amplification. I just repaired my old Harman Kardon and I wanted to put it through its paces.
Ah, OK!
DavidC
Nice to see someone still recognizes the sonic purity of tube amplifiers. Despite your monikor, I assume you embrace vinyl over CD :)
My heirs will have to pull the vinyl from my cold dead hands. :>)
edit: BTW 20 plus years ago I could hear the difference between tube and electronic. Now I can't. I suspect some of it has to do with better silicon and some of it has to do with older ears and too many rock concerts when I was a stupid kid.
I don't think it's only your ears. I've noticed the same trend, for tube amps vs solid state and for cd vs vinyl. For amps, the complexity of the electronics and user interfaces have improved enough in the last few decades that a talented musician can create nearly any desired sound by fiddling digital controls in the right way. For stereo systems, it seems that the quality of the amps and speakers are the major predictor of performance nowadays, and the high bit rate a/d encoding of cd's is sufficient to eliminate most perceptible differences between the sound output of the musician and its representation on an audio device. Even still, on vinyl you may occasionally hear a pick scraping a guitar string, etc., that might have been eliminated in the digital encoding. I think that's about all the glory analog has left, but maybe we'll see a comeback. I'm all for it.
That's a beauty. I've got a modded Bandmaster in need of repair, but it'll never look that nice!
Mine doesn't look that nice either. I grabbed the photo off Google images. But I do own that model. My father was an old High Fidelity guy and passed the curse on to me.
Anybody want my Fisher? All you have to do is get the oxidation off the aluminum from Fla. salt air and ....?
On the other hand, in case the elec. grid gets shut down I got a Singer treadle heavy duty sewing machine in case you need your wagon harness made or canvas sewn for your get away voyage.
If the grid goes down, I'm exclusively acoustic, and I'm not going anywhere.
Many moons ago I had an old Fisher receiver I saved from becoming landfill fodder. Tweaked it a little, connected it to some DCM Time Windows (1st gen) and enjoyed it.
Sweet. What speakers?
My dad made a pair of speakers (including the mahogany cabinets) with his own hands when I was a young pup and I took them over when he died. He said they could handle 500 watts each, but I've never pushed them that hard. One of the woofers has a small (age?) crack and I'm looking around for a replacement pair.
They don't make them (woofers) like they use to.
What drivers then; Dyne, Vifa, Seas, Morel? Your dad probably had a copy of the Loudspeaker Design Cookbook...
I have a set of NOS early-90's Morel 3 way w/ custom Solen x-over that I'm probably never going to use - surrounds and spiders are excellent but I expect the ferrofluid is drying up.
I've heard good things about eminence speakers (eminence.com).
Thanks for the tip. My Dad was a master craftsman in every sense of the word. I'm just a wanna be that's too busy with other things to get too involved in the details other than to turn up the volume and enjoy the zero gravity field. The speakers were built in 1962 and are well past their prime. But they are priceless to me so I will maintain them as best I can.
Tight 50 yr old mahogany cabinets are valuable and worth preserving. Well maintained mahogany guitars of that age are quite expensive because the wood's acoustic properties improve with age, and I doubt it's much different for speaker cabinets
Steve Lavezo, Denton,Texas,master carpenter makes custom speakers if anyone really wants them.CD, thanks for your continued contributions to the knowledge base of ZH.Bulldung
Made these 3-way loudspeakers myself...
http://www.frontiernet.net/~jimbot/loudspeakers.htm
My father works for Harman.
Sadly the new Harman is not the same as the old Harman. But nothing else is as well so I'm just an old fool crying on my tube amplifiers.
And that isn't a coincidence. They shifted much of their focus to automotive since they landed huge contracts with asian and european automakers. My father would be the first to admit that consumer division has gone to hell.
Harmon Kardon Citation-2, my first tube amp. I drove Acoustat-4s with it, tricked that amp out with so many tweaks, then got into horns and low powered single-ended triodes. It's all good...
Tyler, you sold your recipe to Ragu? You're gonna be rich!!!
Thanks for the laugh!
I'm not sure where they get THEIR chickens, but my entrail reading this morning indicates extended squishiness.
It goes without saying.
Oh my God didn't you hear a fucking word I said? Just buy the fucking dip. If you don't you are a fucking idiot. Buy the fucking dip.
+QE
...wow that's bold. or inane.
personally, my expectations for today. let's just say i'm not going to "BUY the dip":
http://www.hedgefundlive.com/blog/tuesday-market-expectations-from-jeremy-frommer-7-reasons-the-stock-market-is-suffering-from-narcissistic-personality-disorder
im goin all n...
bullets and Silver that is...
Real money bitchez.....
I hope you have your beans and band aids too.
Not just a bandage, make it breakfast!
http://www.baronbob.com/baconandeggsbandages.jpg
Merrill must have picked up the Bernank red phone this morning.
Is the Dip the buyer? Perhaps then it should be DipSh*t.
Somehow it connects with the unwinding in Italy... Borsa Italiana can safely open now that Merrill clients, blissfully ignorant but "sophisticated" investors, will gobble up everything.
Poor lemmings! Just as equity mutual fund flows turned positive.
QE2 was balls to the wall. QE3 will be one ball to the floor, the other to the ceiling!
I have a distinct deja vu when reading your post.
And I don't know what you're saying: is it Cash, Silver or Dip?
Or a mix, perhaps? (blend and season to taste)
;-P
I suppose B o A's credit card divsion write off of another $10B has nothing to do with Merrill's need to generate more fees.
ML Ad to Its clients: Knife Catchers Wanted!
True story.
When I was much younger I was introduced to a self described "expert juggler" who could juggle just about anything he could grasp in the palm of his hand. He speciality was knives and coke bottles with their base broken off. High risk to say the least.
I asked him what was the most difficult part of doing such a dangerous activity.
"Complacency" was his immediate answer.
He said that he had to approach the task each time as if it was the first time because it only took one miss to cut open his wrist. Wise words from a man who dealt with real danger.
Cramer, Liesman, and Hamey/Harry are onboard with this theory obviously - lets see if they can afford a computer by the time the dips stop
And folks wonder how blindly people could have just kept levering up and buying into the dot.com bubble and housing bubble.
All they way down they told you what a bargain it was same as all the way up and all the Capt. Hindsight said "well the signs were everywhere on a market collapse"
To think that anyone would even consider buying into this market that appears impervious to all news, fundamentals and perpetual baked in Fed and PD intervention is downright frightening. When it is realized Mr. market is bigger than the Fed himself it is head between your legs time.
Has the Italian market reopened? I've been long olive oil futures since last August and plan to take delivery to capitalize on the pain of AFTSFWKBTFD: Ass Fuck The Stupid Fuck Who Kept Buying The Fucking Dip.
----
I am the fucking dip...ask my wife
What does that make your wife....since she's fucking the dip? :>)
He said wife, not girlfriend.
Ahem....BTFD! Because no matter what else you see, the recovery is STRONG, while being 'quite fragile' whenever the topic of easing back on the printing or raising rates comes up. Rock the fuck ON, Wall St! :D
Because they want to steal your assets.........again!!! Fool you once....the second time you're a stupid ass.
"Can fool tousand people once, but cannot fool tousand times people"
SPX
Don't.
http://www.zerohedge.com/forum/99er-charts-0
PE ratio's still on an upward trajectory...kind of like 99 again. http://www.multpl.com/
So far, everyone is pre-conditioned to buy the dip.
It is the only way the PigMen can distribute stock for a few weeks, maybe months.
Yup
You guys are way too negative and unamerican. The tiny company CoreLogic is clearly biased and need some internet attention. What is their facebook/twitter audience size? Close to 0? What? Then make a big statement and get some!
The Recession has been over years ago!!
More american retired early, with wealth effect and low inflation expectations, and sitting in front of huge HDTVs enjoying the shows from north Africa!
Be a Patriotic person and BUY TFD!!
Ze Ponzi must continue, achtung!!! Fraulein Blythe vill lead ze way.
Just turned on shitnbc to see them saying look, market cut its loses in half.
Boner to the brown eye all the way.
So, I should buy low and then sell high?
Never sell. Just Buy The Fucking Dip.
Sheesh, how many times must you be told? :>)
Ohhhhh. I think I get it now...
How's the baby? Must be nearly a year old by now.
Don't get her old before her time! She's barely five months. :) She's a little ball of happy.
In order for this to work, you must tell everyone you know, so they too can BTFD. Get your friends and family to BTFD. The more people who BTFD after you, the more money YOU make!
dup sorry.
Someone bought the dip in the Dow. It's recovered about 60 points in 10 minutes.
S&P nearly recovered 10 pts off the low, but the buying seems to be decelerating as the second derivative is getting a bit mellow here.
At least we still have BTFWW3
Merrill went broke buying the dip...and when ever they said that they has stock to sell anyone....
ML is a useless place and has been for years.
They used to be the gold standard of brokers. Well respected. But flushed like a turd during the first wave of financial crisis.
Consumer confidence rising and rising, to me that
clearly signals bad, reason being when my neighbors
who have no idea how anything works or the situation
we face feel things are ok clearly shows just how bad
things are going to get
i understand the sarcasm of BTFD however at this point
i feel maybe the joke is done and we should be using
BTFG for those with high cash flow or BTFS for those
like me
As a former Merrill FA, this doesn't surprise me. When Rosenberg left, they lost any remaining shreds of objectivity.
However, this is no different than what all the big brokerage firms are saying right now.
Rich Bernstein was darn good, too. Independant. Where did you end up? I am now at a Swiss firm.
Each of us could use BTFG or BTFS to kinda show
where each of us is at...just an idea...let the junks
begin
BTFS
BTFBeans
We continue the ignore-the-risk rallies. After all, we have printed prosperity now! Reality is no more!
Only a brainless Merrrill braniac can write such a WORTHLESS note. Worthles reading...
Would you like some hot sauce for the words you're about to eat? Rally Monkey....
guess what the dope is RIGHT...the market wants to go GREEN WTF....Its all good.....what crazy shit....
That does it, I'm loading up on Braniff Airlines!
I have some Pan Am stock I'll sell you.
Amalgamated Buggy Whips is gonna rise any day now! :>D
Get shorty redux.
"...also the doubling since March '09 is below the 62% move higher seen in the 2yr's following a bear market..."
Since when is a doubling (100% move) below the 62% move?
Buy the crater!
Land on the new madrid fault line. A buck an acre. Must have wading boots and be able to fight off angry birds looking to defend their new nesting grounds. Getting to leve 6 in the app angry birds does not help.
sorry meant to post on housing dip thread - erased
Here is why you should BTFD!
http://www.youtube.com/watch?v=jllJ-HeErjU
ES
Time to buckle up?
http://www.zerohedge.com/forum/99er-charts-0
I smell fear. The ES must recover the entire drop or people will begin to smell the weakness.
I plan to "buy the dip".....as soon as gold passes the DOW.
CONsumer CONfidence out today, rising together with oil and food. Looool! It appears that the methodology of the survey was changed. It's so simple to get what You want. If the old one is crap just change the internals to make it look good. BTFD...
Why does "buy the dip" become stupid advice this morning, when it has been good advice for quite some time? You callin' a top?
Fuck the dip.....buy gold and silver. They can keep their fucking paper.
Ahem.. BTFD'd (buttfucked) if you continue to buy the fucking dip. You think its going to be that easy for the world to make money to just buy the fucking dip. That plan stinks just like my durian. All fruits have their ripe time gentlemen.. and this buy the fucking dip is about to go rotten.
Open wide and apply the KY gentlemen, get the Preparation H handy! Get ready to BTFD!
At last, some good financial advice!!!!
Time to Buy!
Dow Jones 12,296.88 -94.37 (-0.76%Why the FUck would I do that you dumb shit mf!
GO BACK TO YAHOO WHERRE YOI BELONG!!!!!!!!!!!!!!!!!!!!!!!!!!
stupid plumper
A fruit like myself knows a stink when it smells one.
But you can go on eating the forbidden fruit and BTFD until you get BTFD'd (buttfucked)
Just make sure to rub some durian creme on your anus after the dip doesn't come back up and its all stuck in there.
It has been predetermined that we are going back up to at least 14,000 on the DJI by the 2012 elections. So it is safe to buy all dips between now and the day after the election.
"The Conference Board’s index of sentiment increased to 70.4, the highest since February 2008, from 64.8 the prior month, figures from the New York-based private research group showed today. Economists projected the gauge would be little changed at 65.5, according to the median forecast in a Bloomberg News survey."
http://www.businessweek.com/news/2011-02-22/consumer-confidence-in-u-s-i...
Sorry about the last post I forgot to use my doppel. I sure most of you here know what that is like. Won't happen again.
tj3
Tyler,
I know, you know, and everybody else here (even Harry and Leo) knows that the fundamentals are completely messed up. But where is money that is chasing returns supposed to go? I'll take the skewed fundamentals of the market any day over the unicorn fantasy that are the fundamentals of the U.S. dollar. I'm not encouraging people to invest their hard earned capital into the stock market. I'm just saying that I'm not sure that it will necessarily implode.
The bond market dwarfs the stock market. When the U.S.' government sovereign debt problem really bubbles up to the surface, there is a solid argument to be made that there will be a massive squeeze into any asset of any kind, including stocks. When the U.S. sovereign debt problem gets tossed out with the bath water, look out below.
Beans, bullets and a warm dry place to sleep, preferably near a naturally potable water source.
also the doubling since March '09 is below the 62% move higher seen in the 2yr's following a bear market....
Did anyone else note the error or typo that led to a flawed conclusion?
100% doubling is far more than 62%, ergo selling the rally might make more sense and dollars
He forgot to add the specific stocks you should buy...i.e., the stocks Merrill wants to dump.