Part of the problem with “playing a bounce,” is picking the right stock(s). In the past, prior to acquiring space ships and other “new age” technology devices, “The Fly” would occasionally pick the wrong stock—essentially fucking up the “oversold rally bounce.”
As you know, nailing short term bottoms can be sweet. However, buying the anomaly, or the only God forsaken stock that stays down on a bounce, can drive any investor to mental instability.
Some people go long the index’s, via [[QQQQ]] or [[DIA]]. However, I think buying index ETF’s is plain ol’ vanilla gay. Instead, for a bounce, I like focused ETF’s, specifically [[ROM]].
ROM is the Ultra Technology Fund, which is most heavily weighted in [[MSFT]], [[AAPL]], [[CSCO]], [[GOOG]], [[HPQ]], [[IBM]], [[INTC]], [[ORCL]], [[QCOM]] and [[DELL]].
Barring a notable blowup, on a bounce, buying ROM will almost ensure participation on the upside.
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CPHD looks good here, especially for a bounce.
Good idea, thanks.
ROM trades like shit though… only problem.
Very illiquid.
-DT
IBM Boeing and Goodrich downgraded and the stockgoons are buying -ok, righto. You can call this a rally, i will call it a short squeeze after phone calls were placed between people we all know. The stockgoons are going to sell the market, but they are not going to be bidding each other down, that’ would be stupid- how’s that coach stock. Oh ok Thain is going to give out free oral sex in shanghai – that’s goo dnews..
Nice idea Fly, Thanks for sharing.
edit: Damnit, forgot to enter my info again.
CubsRock
Justone more thing. Fuck you. I don’t think so.
bought NOK and VIP this morning to play for a short term bounce.
ROM looks good for a bounce off the Aug 16 lows of $65.53. Don’t hold on too long thou since we aren’t looking at an “oversold” bounce. It would be more of a “WTF, this can’t go down forever” type of bounce. These are sure to reverse at any illogical time and bite you in the ass while you are on the golf course or trying to land a nice steelhead on one of the 6 Rivers in northern Cali. Fuckers are big this year.
I’m not buying it.
Just saying…
Use the bounce to lighten up long positions and get short.
ej poked its pointy little head up 6%. it thinks its going places and i think its going to get stomped down.