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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