Ride Out Market Dips and Aim for Rebound Rips with TradeSmith Strategies

Buy the dip and trade the rip… that has become the mantra for many retail traders these days. 

And for good reason: The strategy has worked consistently for several years now, including through a turbulent 2025 and again in just the past few weeks!  

The most recent dip in the S&P 500, as shown above, was driven by fears that AI could soon trigger an “apocalypse” for leading software stocks. 

In my view, those fears were overblown – and the market agreed, staging a quick rebound.  

In fact, the Dow Jones Industrial Average just notched new all-time highs above 50,000 for the first time. 

Still, this may be just the first of many dips in what is typically a turbulent mid-term election year.  

And seasonality suggests another dip soon could lead to a springtime rip. 

Strategies Built for Buying the Dip 

As you can see in our TradeSmith Seasonality chart for the S&P 500 above, over the last 15 years stocks have a tendency to dip from late February into late March.  

In fact, the S&P 500 has been up just 60% of the time during this seasonal stretch, with an average dip of a little more than 2%. 

The good news is that TradeSmith offers several strategies that are perfectly suited for buying the dip and aiming to profit from the rebound rip. 

This includes our exclusive Snapback Strategy, as well as our Platinum-exclusive Bollinger Bands and RSI Precision strategies – two of my favorites – that are perfectly suited for dip buying. 

To access all of our TradeSmith Strategy signals, simply log in to your TradeSmith Finance dashboard, and click on Invest, and then select Strategies from the submenu, as shown below:  

Please Note: If you do not see this feature on your dashboard – and would like to – simply call our Customer Care team at 888-623-0858 to find out more.  

Inside the Strategies section, click the Overview tab and scroll down the page to view all our proven investment and trading strategies.  

Or, in the upper right of the page, simply click on the Strategies dropdown menu box to choose the specific strategies you want to view.  

Now, let’s take a closer look at two powerful dip-buying strategies – and what makes them tick. Then we’ll take a look at recent results.  

And later, I’ll show you how to easily sync your investment portfolio with TradeSmith Finance so you’ll never miss out on a dip-buying opportunity.  

How to Aim for Profits with Two of My Favorite Strategies  

The Snapback Strategy was designed specifically to capitalize on volatile market conditions and helps you systematically identify stocks that have dipped and are poised for a rebound rip. 

This strategy uses short-term moving average divergences, along with historical price comparisons, to pinpoint oversold stocks that are likely to produce a quick, sharp rebound in price. 

The proof is in its performance: Snapback has outperformed the S&P by more than 4-to-1 over the past five years! 

Now, simply scroll down through our exclusive TradeSmith Strategies page to find Snapback. 

You can click on the Manage View tab in the upper right corner of the page and check the boxes next to the specific TradeSmith Strategies you view most frequently.  

And each strategy includes a brief description, plus the top results for stocks that qualify. Most also feature a backtested performance chart comparing results to the S&P 500 Index.  

As you can see above, the Snapback strategy has impressively outperformed the S&P by more than 4-to-1 since May 2020 (+46.58% vs. +10.54%)! 

Scroll down a bit further on this page, and you’ll find another one of my favorite strategies: Bollinger Bands. 

Like Snapback, the Bollinger Bands strategy spots oversold stocks with breakout potential by analyzing a stock’s position within its Bollinger Bands – a popular technical indicator.   

Both the Snapback and Bollinger Bands strategies offer a rules-based approach that can give you a tactical trading edge by recognizing stocks you can buy on a dip – and profit from a possible rebound rip! 

When I visited the Strategies page yesterday, as shown above, I selected only Snapback and Bollinger Bands, then clicked on the Results tab and got 161 matches. 

Ranked #1 on the list is Gartner (IT), the only stock that qualified for both strategies. It also qualifies for our unique Money Movers strategy as well. 

Simply hover over the highlighted numbers in the strategy column to see all the strategies that each stock qualifies for, as shown above for Gartner. 

You can always narrow down your results by filtering or sorting by other indicators, like  our Business Quality Score, Free Cash Flow yield, Seasonality, and more. 

Be sure to revisit the Strategies page on a regular basis regularly to check for new qualifying stocks. The results change nearly every day. 

Many of our exclusive strategies – including Snapback and Bollinger Bands – are designed for quick trades during temporary pullbacks.  

But keep in mind that since these are fast-moving trading strategies, you’ll want to make sure you’re ready to take action just as soon as new signals flash. 

Reminder: Keep Your Portfolio “In Sync” with TradeSmith! 

A great way to keep track of new signals easily is to make sure you’re getting alerts from TradeSmith Finance as new trade ideas appear.  

And be sure to sync your investment portfolio so you can easily track new trading ideas, along with the performance of all your trades and longer-term investments.  

If you haven’t done so already, securely syncing your brokerage account allows you to easily track all your investments in one convenient place.  

It’s a quick and effective way to take control over your finances and helps you avoid taking unnecessary risk. 

I recently covered our Portfolio Syncing tool in detail in an Inside TradeSmith column here.  

It’s a great step-by-step to resource you can use to quickly and safely sync your brokerage account with TradeSmith. 

Mike Burnick’s Bottom Line: Buy-the-dip and sell the rip has been richly rewarded in recent years. How long that continues is anyone’s guess, but TradeSmith’s proven Strategies can help you consistently find stocks that have dipped and are poised for a profitable rip. And once your portfolio is securely synced, you can easily set notifications to alert you to every new opportunity our strategies produce. 

Good investing, 

Mike Burnick 
Senior Analyst, TradeSmith 

P.S. Of course, buying quality stocks on a dip and riding the rebound is only one way to take advantage of market volatility.  

But we know it’s far from the only way to capitalize on turbulence.  

For traders who want to go a step further – especially during these choppy, headline-driven markets like we’re seeing now – other TradeSmith strategies can offer even better alternatives.  

That’s why, over the past few weeks, I’ve also been highlighting a very different opportunity inside TradeSmith. And it doesn’t require you to predict whether the market’s next move is up or down – it’s built specifically for environments just like the one we’re in.  

Keith Kaplan, CEO of TradeSmith, has developed an innovative options tool called the T-Line – which represents a major shift in how traders approach options. 

And while strategies like Snapack and Bollinger Bands help you buy the dip in stocks, the T-Line focuses on market-neutral opportunities in options – zeroing in on probability and true value. 

This type of analysis has traditionally been reserved for hedge funds. But this tool makes it simple and actionable for everyday traders.  

And with more volatility likely ahead, now is the perfect time to revisit this strategy.  

So, click here to watch Keith’s walkthrough of the fair value tool and discover exactly how it works – and why it’s quickly becoming one of our most talked-about breakthroughs.