I have decided to take on two more small long positions, BVN and HWAY. Both have handled the bad market well. HWAY is in the medical lab sector, which has been somewhat of a safe haven in recent times.
While badly beaten stocks are usually the best short term bounce plays, I don't have the stomach to go after these types of stocks at the moment. Therefore, I've decided to play the bounce thesis with two strong stocks and one index play (QLD). All are small position sizes with logical stops that wouldn't lose me more than about $800 combined if the market continues to tank. Unless you have supreme confidence, I would not make any big bets at the moment.