We have some minor dip-buying interest after the big gap down, but market players are understandably nervous and are inching in quite slowly. Breadth is horrendous at better than 10-to-1 negative, with the precious metals being the only place to hide. The longer we hold above the early lows the more likely buyers will gain confidence, but trusting a bounce when the news flow is this bad is not an easy task.
We really are at a tough juncture right now. While we are oversold and negativity is quite extreme, it is impossible to trust bounces with the macro picture in such disarray. I see plenty of stocks that I would be interested in if the market was stable, but, at this point, there just is just too much risk to hold anything sizable.
I sold down some gold miners such as Minefinders (MFN) and Jaguar Mining (JAG) and added a little of silver miner Alexco Resource (AXU) but mostly I'm moving out of the group for now. The precious metals group needs to set up again after a good run.
Outside of metals, it is a wasteland of broken charts. I have a shopping list of things with some good earnings numbers, but until they act better, I have little interest in buying. My style is to buy strength not weakness, and right now, there just isn't any strength that can be trusted to last for long.