Market Feels Like It Is In A Free Fall

The markets have been selling off all day, and feel like they are in a bit of a freefall.

It's hard to watch the market on days like today, as panic ensues and the selling intensifies. But my years in the market have taught me that days like today often represent better buying opportunities than selling ones. It may not be "the" bottom today, but we are likely close.

The chart above shows the volatility index (VIX), which is commonly known as the "fear" index. You can see that today it has spiked above the levels we saw in March. Usually the VIX experiences its biggest spike toward the latter stages of a selloff, when the most market participants throw in the towel. I think that is what we are seeing today.

Again, to be successful, sometimes you have to do some buying when it simply feels the worst. That is how I feel today. So I have put some money to work, and now I will wait for the market to bounce. Remember, market bottoms are often a process, but I think a bottom is well underway.