Which is the Best Way to Trade Stocks Given an Up/Down Move in the Index?

Other than trading the futures themselves, if you sense the S&P/Nasdaq will rise/fall intra-day or overnight what is the best way to trade individual or groups of stocks that will rise/fall with the market?

 

Buy the rising stocks; sell the falling stocks.
Rinse; repeat.

 

But how did that do in the flash crash?

 

There is really only two trading strategies in any market. Trend Following and Mean Reversal. You either buy a falling market (Mean Reversal) or sell it (Trend Following). There is no best way. Just two strategies, and once a position is taken, if you change the strategy, you lose money. It's as simple as that.

 

How do you sense this?

 

How about trading the market itself using an index ETF or suchlike?

 

Trying to sense the market's direction makes no cents!!
Instead, ask the market, and listen to what it's telling you. But don't hear what it ain't sayin'!!

 

Aren't you worried about your stocks getting wet ???

 

Ack sorry, don't know why it comes out so huge.