The Dow Jones Industrial Average dropped over 2,000 out the gate as OPEC is now in an all-out price war.
The world's largest oil cartel could not agree on production cuts in response to the coronavirus. Futures contracts at CME hit "limit down" over the weekend and halted trading for a short period. More on this story below.
First, here are the numbers from Friday for the Dow, S&P 500, and Nasdaq:
| Index | Previous Close | Point Change | Percentage Change |
| Dow Jones | 25,864.78 | -256.50 | -0.98 |
| S&P 500 | 2,972.37 | -51.57 | -1.71 |
| Nasdaq | 8,575.62 | -162.98 | -1.87 |
Now here are what I think will be the most important market events and stocks on Monday morning.
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[mmpazkzone name="in-story" network="9794" site="307044" id="137008" type="4"]The first thing to do during extreme market moves like today's is remain calm.
Make no mistake, the spread of the COVID-19 is very concerning.
We're not downplaying that.
But panicking in moments like this is the worst thing you can do.
Remember to maintain a disciplined investing approach.
And even though buying stocks right now may seem daunting, huge swings in the market are actually a great time to take advantage of volatility.
"Don't panic in the near term, and use the pullbacks to 'Accumulate' good wealth plays you're going to 'go long' with," Money Morning Executive Editor Bill Patalon said. "I call it the 'Go-Long/Buy-Good' strategy."
Patalon has been recommending this strategy to Money Morning readers since we were founded.
"I've fine-tuned it a bit by using the 'Accumulate' approach to maximize its power," he said. "You establish a foundational position in the stocks you like - and then add to those holdings on pullbacks or as you get more cash."
It's a sentiment he shares with Money Morning Chief Investment Strategist Keith Fitz-Gerald.
"Most people don't think this way, but remember how the game is played. You buy low and sell high," Keith says. "So believe it or not, what you want to do is buy in on big down days, knowing full well that volatility cuts both ways."
"That takes nerves of steel, because nobody knows when the markets are going to rebound. But we do know that history is very clear that they will. It's a function of growth, not headlines."
Keith always urges his readers to keep a list of "must have" stocks nearby. During times like this when the markets take big dips, you can swoop in and get excellent companies at better prices.
If you need stability right now and can't afford to take any losses on stocks, gold is a great choice.
You don't want to put all of your money in precious metals, but a small allocation between 2% and 5% is a good balance to volatile stocks.
At Money Morning, we like the SPDR Gold Trust ETF (NYSE: GLD). It's liquid, reliably tracks the price of gold, and has a low fee structure. You get the benefit of owning gold without the inconvenience.
Another profitable strategy is options trading. In the last week, we've shown readers two options strategies that resulted in gains of 450% and 50%. We've just released another today as well. Click here for more information.
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About the Author
Garrett Baldwin is a globally recognized research economist, financial writer, consultant, and political risk analyst with decades of trading experience and degrees in economics, cybersecurity, and business from Johns Hopkins, Purdue, Indiana University, and Northwestern.