The most difficult aspect of market corrections is that the merits of the individual stocks you own don't matter and will not protect you.
We are seeing almost crash-like action in some areas of the market Monday, and strong fundamentals just don't matter when this sort of selling occurs. Market players just want to raise cash and stand aside until there are some signs of support.
While this action is extremely painful if you are holding thinner stocks with no bid support, the good news is that many of the "good" stocks that are being hit hard will eventually bounce back. Both the good and bad are being hit right now, and when the market sorts them out at some point, the better names will attract buyers.
There is no easy way to time bounces in this environment, but the key thing is to stay patient and don't be in a rush to put more capital to work until there is some strength. The snap-back action can occur quickly when things become very stretched, but it is much more difficult when there is some extreme rotation taking place.
While some stocks are already experiencing bear market action, it is not at all evident in the indexes, and that makes it much tougher for bottoms to form and snapbacks to develop from panic levels.
My small stocks are taking a pretty hard hit today. There are some I want to eventually add to, but I'm not doing that right now.
There has been much talk about how expensive many large-caps have become, but that sure doesn't apply to many small and mid-caps.
We had some similarly poor action back in February, and this feels much the same, but I don't think we will have to wait for months for a bounce this time.