The key is to find these stocks when they have solid support in place in terms of their asset value. There are many bargains in the materials sector, which is great for long-term value hunters, but of little consequence to short-term traders.
The key is to focus on companies that appeared to perform quite well in recent quarters, shrugging off the foreign headwinds that had just been emerging. These headwinds are now growing stronger and it's hard to see how those companies can overcome the gravitational pull of a sagging Europe and Asia. David Sterman does not personally hold positions in any securities mentioned in this article. StreetAuthority LLC owns shares of AA, CSCO, PG, in one or more if its "real money" portfolios. This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.