There seems to be a panic on the street and all logic usually goes out the window. While we are losing short term, I think that a bounce is warranted and soon. I would be holding stocks like AA, ATI, Delphi, AMX and a few others. Having made some markets in stocks years ago...when the markets look ugly and sellers keep hitting the bids, the strategy was to just drop the bids and keep dropping them until the selling stops, unfortunately. The values were worth more, but when everyone wants to sell at one time, it is usually the practice to drop. Its like trying to sell your house immediately today and there are really no buyers. The prices we see today are not what I would call "real". In time of chaos, and hype played up on programs like CNBC, we find that there is a limited market or no market for stocks when everyone panics as we have seen over the past few days. The fundamentals haven't changed so please remember that if you are nervous. Focus on the fundamentals and it will all work out.
Remember these very important lessons:
1) When the market is running and you get euphoric and you start calculating all the money that you are making - sell some stock and keep selling if it continues to run
2) When the market looks bad are you are scared beyond belief - buy some high quality stocks and leg in more on further drops
3) Repeat the process
