The market action today is a good illustration of downside momentum. This is what happens when folks want out and there isn't any interest in dip-buying, which always sounds like a great idea when the market is uptrending, but when it starts to free-fall, dip-buying loses its appeal very quickly.
What is particularly worrisome is that we have not had any decent relief bounce after the pounding yesterday. There was virtually no interest in bottom fishing and even the contrarians, who are quick to conclude that sentiment has reached extreme levels, aren't biting.
The most productive thing you can do in this environment is to work on watch lists and identify stocks you will be interested in when the action improves. Avoid the temptation to buy them now, but be ready to move when the market starts to act better. Keep in mind that it is much more important to buy when you have momentum on your side than try to identify the absolute bottom. Too many people are impatient and refuse to wait for strength before risking their money. They usually end up discovering that stocks can go even lower than they think possible.
I have eye on some gold and silver miners like Sandstorm Gold (SAND) and First Majestic Silver (AG), but I see very little that I want to do right now. The market is definitely due for a bounce soon, but I'd only play it very short term with some exchange-traded funds if I needed an adrenalin rush.