I learned years ago that on days like today, when the market is awash in red, that the most valuable thing you can do is hunt around for anything bucking the trend. Then look into why. Because if a stock can rally on a day like this, it's worth looking into.
As I write with an hour to go before the markets close, with the down down 500 earlier this morning and oil settling at a 13-year low, I'm seeing signs of life. Particularly in the most beaten down names and sectors.
Twitter, down almost 50% in the past three months is up 5% today, reversing losses earlier in the day. Other beaten down tech stocks (Box, Yelp, etc) are also in the green. Even some of the miners are eking out gains, which tells me that someone is out there trying to catch the falling knife. Or put another way, someone believes that the recent swoon is too much, too fast.
To wit, Oaktree Capital's Howard Marks has been out since late last week advising buying, rather than selling. And while that may not be the right play for everyone, it's a good reminder of the attitude we should have when everyone "knows" the market is in free fall (or the other way around).
As Ryan and I both though this morning with the 10-year dipping below 2% ... are there any loans we can lock? You can learn a lot just by watching on days like this.