To every action, there is an equal and opposite reaction.
This is true in the markets. Well, mostly.
The problem is not every reaction arrives in the same timeframe or to the same lengths. For instance, we may not fall as much as we rose. Those aren't equal; however, I could argue the "easy" buying of growth last year has morphed into a situation where it is now "hard" to buy anything growth-oriented.
Easy versus hard. Growth versus value. Crypto versus... well, this one is still a work in progress for me.
Back in January 2021 we were wondering what would slow down the bullish insanity from 2020. We're now asking what's going to end the current growth and tech destruction.
I don't think Tuesday morning is the worst time to get your buy list ready. I wouldn't go in guns-a-blazing, but if you've got longer-timeframe investment money, especially retirement account money that has time to be patient, legging into growth names should be a consideration. There have been plenty of names that have competed or nearly completed a roundtrip from lows to highs and back.
A key Tuesday will be to watch for red to green. A secondary one will be to watch for hammer formations. That's when a stock falls from the open, hopefully quite a lot, and then rallies back to close at the open (high) from the day.
For Wednesday, we'll want to watch for the potential of island formations, so a gap higher on the open after a gap lower Tuesday, so that today's candle becomes an island unto itself (not touching other candles).
Sentiment is horrible out there among the traders I speak to on a day-to-day basis but I'm hearing many starting to nibble with the above strategy.
As long as you can enter a trade with the ability to live through another 10% to 20% downside. That doesn't mean you have to be happy about it, but if it is going to cause you to lose sleep or feel sick to your stomach then odds are you are still too invested with current holdings.