no, actual clay. now not just silly putty or some kindergarten stuff. go to your auto parts store and get clay, i bought mine off of griots garage's website. i don't know about rubbing compounds, i used some once to clean a boat and it was tricky, i don't think i'd feel comfortable using it on my car unless i knew EXACTLY what i was doing, has a tendency to stain if your not careful.
the clay however is very easy to use, granted it takes a long ass time, but its worth it.