Gauging a stock under market melt down conditions

When a stock gets pressured from a broad market sell off, know what to look for before buying.

During a meltdown it is important to kick the tires of a said stock and see if it is worth a buy or maybe adding to a position you already have. Check for all the recent press releases and by all means do your TA and read the charts. If your not familiar with the stock check the fundamentals.

What else can I do:
Check it's sector and see if it is down as well.
Is the stock holding as good or better than the other stocks in the sector? If not figure out why

Other things that could increase the drop in price:
A bad press release
High short interest
Already being overbought
Some times there is not a press release but give Google a try. I have found info that was not on the normal channels.

The Bad - Broke below support on high volume. If so beware

The Good - If the market recovers some, so should your stock and come off it's low of the day and start climbing. If it does not...Beware

Suggestion: If you make a decision to buy and it is not at the end of the trading day, split your buy up into at least 2 tiers in case the markets go lower. If it is at the end of the day there is no guarantee the markets will recover the next day. Keep an eye on Level 2, and see if the big money is going on the bid or the ask. The market can give many head fakes...So beware

 

Good point Gil, and below is the threads I have created so far for some of the sectors for those that might want to take a peek.

Insurance http://stockaholics.net/threads/the-insurance-companies.883/
Financials http://stockaholics.net/threads/the-financials.724/#post-5195
Telecoms http://stockaholics.net/threads/the-telecoms.732/
Energy http://stockaholics.net/threads/the-energy-sector.788/
Techs http://stockaholics.net/threads/the-technology-sector.891/
Gaming Stocks http://stockaholics.net/threads/gaming-stocks.134/#post-5101