Yep, for squid a reel with very smooth drag and small increments to the setting at lower drag levels is far more important than the rod its sitting on.
For me these days, get a shimano sonic pro for under $50 and you've got a great little rod for squiding. You should be able to get one with a sienna real for about $60. I use these as my light weight set up for fun on pretty much everything from squid to dolphin fish. Great set ups and who cares if you eventually break it or such at that price. Just silly how good some of the cheaper gear is now.