The DJIA has fallen over 500 points Monday morning and so far there are no signs of a bounce. Breadth is running around six to one negative and new 12-month lows exceed new 12-month highs. Gold and blockchain names are finding some interest but most of the leadership is in inverse ETFs.
The most important thing to keep in mind when trading this sort of action is that it is index driven. The merits of individual stocks don't matter much -- everything will be sold regardless of fundamentals. Eventually, that produces opportunity when the market calms down and investors start looking for stocks that have been unfairly punished. However, it is very easy to be too quick to buy a favorite just because it is taking a hit.
Experienced traders tend to wait an hour or so for a range to form before they take much action. They will then react to breaks of the range in either direction. So far this market is still trying to find some downside support.
I've sold down some ProShares UltraPro Short S&P500 (SPXU) but will stay focused on this as the chances of further downside is very high.
There are plenty of individual stocks I'm interested in buying such as my Stock of the Week, but that isn't a concern at this time.