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.If you enjoy the content at iBankCoin, please follow us on Twitter