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BAML's sell side indicator falls to the lowest level in its 27-year history, flashing a...

BAML's sell side indicator falls to the lowest level in its 27-year history, flashing a contrarian buy signal as never before. The index - based on the average recommended equity allocation of Street strategists - first indicated a buy signal in May, and has continued falling since.
Comments (14)
  • Maybe the indicator is at it's lowest levels because the fundamentals are the worst since the Great Depression. Just use common sense, do you really think that the Dow and the S&P indices should be trading near all time highs with all of the problems we are facing in the world.

     

    Contrarian thinking at this point is futile. How did the contrarians do with Worldcom or Enron or Russia or Argentina or Fannie or Freddie or Countrywide or Lehman? The market is being propped up by the Fed and the "muppets" are buying into it in order to not miss the rally (greed).
    This will end very ugly for stock investors especially those who buy the index (fear). Wait for it......it's coming.
    1 Aug 2012, 11:14 AM Reply Like
  • Interesting that we don't see much (or enough) coverage of the rather sharp glitches that happened in the market this morning, supposedly connected to Knight Trading. MCP was down some 18% at one point before springing back. LNG was up over 10% before declining back to yesterday's close. Doesn't given anyone confidence in buying anything in public markets.
    1 Aug 2012, 11:36 AM Reply Like
  • Investing is allllll political now, does BO need to monetise debt now or just before the election to give the market a junkie boost?That's the
    driving factor, whether it's good for the country doesn't matter!
    1 Aug 2012, 12:04 PM Reply Like
  • "Markets can remain irrational longer than you can remain solvent" - J.M. Keynes
    1 Aug 2012, 12:41 PM Reply Like
  • Love how BAML sell side indicator is flashing BUY! when their Institutional desk is sending me SELL, SELL, SELL every day.

     

    BUY since May? Both barrels of the shotgun eh?
    Maybe the lowest level in 27 years = broken indicator.
    1 Aug 2012, 01:01 PM Reply Like
  • Forget sentiment. That all the money is piled up, in record quantities, outside equities -- exactly opposite of 2000 and 2007 -- indicates where the real risk is, and why, but those that believe the downside story don't seem to ponder the implications of this fact. In the end, these cash imbalances will be controlling, as they always are.
    1 Aug 2012, 02:13 PM Reply Like
  • These sentiment indicators have been out of sync for a while now. Usually you get these extreme buy signals when the market has sold off by a 1000 points not when we're near 52 week highs. And this is from Bank of America/Merrill Lynch need I say more.
    1 Aug 2012, 02:56 PM Reply Like
  • As I said, their Institutional stuff says US Market is about 10% overvalued in the near term.
    1 Aug 2012, 03:21 PM Reply Like
  • Fundamentals aren't the worst since the Great Depression, that is a misleading statement. SP P/E is at 14, a very very average multiple. The market is not over or undervalued. Earnings have still been growing. Inflation is at 1.5%, QE3 is needed. Government intervention is necessary at some points in time.
    1 Aug 2012, 03:05 PM Reply Like
  • "Fundamentals aren't worse since the Great Depression".
    Are you delusional? Market bubbles have been popping for several years now, Debt/GDP ratios as high as ever for U.S., housing debacle, near collapse of banking system, unemployment very high historically and understated, fraud and corruption rampant in the markets, disparity b/w top 1% and everyone else highest ever, war on terrorism (ongoing and costly), popularity of stock investing at all time high (only one way to go from here), baby boomers retiring and waiting for opportunity to reduce risk, gridlock in Washington, election year and I could go on and on.
    You point to a P/E ratio and say the market is fair valued. Please let me know what you are smoking, I would love to take my mind off of these problems.
    1 Aug 2012, 03:25 PM Reply Like
  • Government is not the solution, it's the problem.
    Let the cards fall where they may and STOP the borrowing, monetising and freakin Socialist spending
    1 Aug 2012, 03:27 PM Reply Like
  • Dl:

     

    Hopefully you, your parents and grand parents are the first to turn down Medicare, SSI and employer provided insurance. Otherwise, you are just another hippocrite. If everyone is as benevolent as you seem to be, would do likewise, especially the tea party, this country would have a balanced budget and a bunch of old, sick, dead, bankrupt seniors. But the good news is we will still be spending more than all of the other developed world combined on our military.

     

    That is the root of America's socialism and debt- providing for the elderly and the military/wars.
    1 Aug 2012, 03:55 PM Reply Like
  • CNBC guests concurred this is largely a trading market
    1 Aug 2012, 05:14 PM Reply Like
  • the only way to figure out if the market is fairly valued is to value it to gold. That is the only value that one can really value it to when comparing the time factor, as gold has always been the one asset that is truly set to value. As one poster said, the market is overvalued, and I agree 100%. Forget about PE ratios. Forget about all the other financial ratios. They don't mean beans when these are all accounting mechanisms. Use gold and you will see the market peaked in and around 2000 and has been going down ever since when compared to gold. When a microphone can spur on a rebound in stocks as we saw in the last week, then we know we are in a bear market, and yet, one speaks of PE ratios! And yes, bear markets have rebounds. This is rebound in a severe bear market. I can't buy the SPXU when the market is being controlled by politicians right now. However, it will eventually not matter on way or the other when investors finally figure out this.
    2 Aug 2012, 08:34 AM Reply Like
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