Many market players were looking for a quick oversold bounce after the market pounding Monday. However, they were poorly positioned when the bounce-try fizzled out quickly and are now selling into the abyss as they run for the safety of cash.
Unlike some of the other bouts of corrective action that the market has suffered in recent years, this is a case where market players really are uncertain about something. The news flow about the spread of COVID-19 is panicky sounding and there are some serious questions about what will happen in countries that don't contain its population as well as China.
There still is no real worry in the U.S. but the tipping point could occur quickly if there is an increase in the number of cases.
The most important thing to keep in mind right now is that this is index-driven action. You cannot hide in individual stocks because their individual merit is not taken into consideration. While this will eventually lead to great opportunities the best strategy is to just stay out of the way and remember the first rule of holes --when you are in one, stop digging.
I'm excited about the opportunities that will develop but I have no idea how far the indices might fall first. I don't see a news scenario that is going to change things quickly. It is likely that the COVID-19 situation will get worse before it gets better.
If you are struggling with this market, I suggest that you make a few sacrifices to the gods and sell a few things. It may end up being poorly timed, but I guarantee you will feel a sense of relief.