In my March 23, 2007 essay, I said I would like to see a slam, bang, bone-crushing sell-off to provide the bargain prices needed for a long rally. Well, it looks like I got what I wished for. Now that The Fed has lowered interest rates and the market is rebounding, how do we take advantage of it?

The easiest thing to do is to go bargain hunting for high RS stocks. I've written about this technique on several occasions and it is very easy to do. Simply sort Stock Viewer by RS Descending and look at the stocks with "S" recommendations. For example, Apple Inc., AAPL, still had an "S" rating as of yesterday. An "S" rating and low RT means that a stock has been beaten down in Price. Is it time to buy it? It sure is, if you're a red-blooded, fearless bargain hunter. For more information on bargain hunting for high RS stocks, you may read my essays of 08/10/07, 08/04/06, 10/14/05, and 05/13/05.

Last Friday's Strategy section also said the Model Portfolio was long with "high volume ETFs." Why did we go long with ETFs and why did we pick XLF, SPY, QQQQ, and IWM? We chose to go long with ETFS because, at that stage of the rebound, we wanted to play the market instead of taking single stock risk. We chose the stocks we did because we wanted to beat the performance of the VectorVest Composite with minimum risk.

On several occasions VectorVest has demonstrated bargain hunting strategies. Some of the more recent demonstrations include: "AC's Climbers" demonstrated on the VectorVest University, October 12, 2007, "Window Shopping for Bargains," August 10, 2007, and "Golden Goodies," March 23, 2007. Of course, the "Biggest Bargains" strategy in the Research section of UniSearch is always worth looking at. Wow, what a fabulous list of choices it came up with yesterday. Try it and see what I mean.

As a final note, I strongly suggest you look at the top 10 Industry Groups ranked by RT descending. Notice that most of them are bouncing off of long, steep declines. They include home builders, trucking and banking that have been hammered over the past 18 months. Low interest rates are the manna they need to grow and flourish once again. Buying them now may seem risky, but that's what the Pros do when it's Bargain Time.

PIRATES LONG.
For those of you who don't care for stodgy old high RS stocks, take a look at this week's "Strategy of the Week." It's called Pirates Long (Exploding From A Bottom). These stocks are blistering. Visit the VectorVest University to see how Mr. Glenn Tompkins found them.