Strongest names bounce the hardest or weakest name bounce the hardest?

Discussion in 'Trading' started by trader99, Nov 20, 2018.

  1. trader99

    trader99

    Hi ET,

    So I see a lot red across all asset classes: stocks, futures, and cryptos. I'm waiting for the bottom. No one knows when that will come, but a short term bounce is bound to happen.

    Do you guys think the strongest name bounce the hardest after a panic drop? Or the weakest name?

    A strong name would be FAANG. When they hit a near term bottom do they bounce higher than a weak stock that's been pounded then bounce up in the market recovery?

    Same with cryptos. I haven't played cryptos in months. Busy with work. I see a huge bloodbath now. Soon, there will be a bounce. I wonder which ones will bounce up the most percentage wise? Is it the market leader BTC? Or the weaker names who's been down 80-90%?

    Someone with a lot of data should backtest this... Free edge here... hehe
     
  2. "Bottom fishing" in a declining market is always hazardous... but if you insist suggest picking from either "those which declined least" (high RS), or "those which declined most" (most oversold). No way to tell in advance which will do better on a rebound.

    Good luck.
     
    Last edited: Nov 20, 2018
    vanzandt and trader99 like this.
  3. sle

    sle

    You should be aware that picking bottoms gives you smelly fingers.