Panic is in the air and investors are dumping everything early on. There are only about 250 stocks in the green and nearly 5000 in the red.
When it's this lopsided, it's clear that the intensity and emotion of the selling are at an extreme. That may be a good setup up for a quick bounce. But keep in mind that with volatility this high, you have to play it tight to avoid a whipsaw.
We are seeing another leg down on poor economic data. The Philly Fed number is very disappointing. The market was already experiencing some panic and this further dip may be capitulation. I'm using it to sell my inverse exchange-traded-fund positions and I'm starting to nibble on a couple of longs.
I continue to buy Web.com (WWWW), one of my favorites, on a very wide scale, but this a fundamental play and not a technical one. I really don't want to add much until it is trending up, rather than down.
Another one I like on weakness is Jazz Pharmaceuticals (JAZZ), which worked out well after the last market bounce.
I'm holding about 90% cash, so I can nibble at a few things that I'm watching, but I do not want to do much buying until I see some upticks.
This feels too much like 2008-2009 right now, and we all know how we went much lower than most everyone anticipated.