Buying at the close
So this is something that has worked for me...its probably not that reliable, and theres not much to it, and theres not much science to it, but it seems to work best for me.
Whenever I see a company drop on news and I consider it an overreaction and the fundamentals dont change too much and the oscillators say oversold, I pick up the stock for a cheap bounce.
However if I buy it in the middle of the day, even if it is trading at the current low for the day, it usually winds up dropping even more by the close, and the bounce I get the next morning gets me just past break even.
Usually, when I expect a dead cat bounce / regular bounce the next day from an overreaction, it happens. But if I buy at the close, I am not subject to more selling off on the same day. Overnight is when people have more time to be rational, and bottom feeders to sort through more data. Intraday is when analyst rankings change and computers pick up on the downtrend and force it down more.
So if you want a bounce, buy it at the close and sell it at the open. Just my quick 2 cents.