Buying Strong Stock When the Overall Market is "Way Down"...Thoughts?

(Depending on) what part of the cycle that the market is in can be a determinant of when to position in momentum / growth stocks or value stocks. "Factor crashes" are anomalies that affect the performance and total return of stocks falling under momentum factor and value factor when: 1) a rising bull or trending market cycle is present which favor momentum stocks ( expensive ) = value underperforms (sometime drastically) and 2) in the initial period following a severe bear market bottom = value outperforms and momentum has it's worst performance.
 
(Depending on) what part of the cycle that the market is in can be a determinant of when to position in momentum / growth stocks or value stocks. "Factor crashes" are anomalies that affect the performance and total return of stocks falling under momentum factor and value factor when: 1) a rising bull or trending market cycle is present which favor momentum stocks ( expensive ) = value underperforms (sometime drastically) and 2) in the initial period following a severe bear market bottom = value outperforms and momentum has it's worst performance.
 
acroreef said:
Dear Folks,

I was wondering regarding your thoughts about buying a strong stock when it falls in price because the overall market has driven the price of most stocks down, unrelated to that specific stock. The assumption is that the specific stock would recover because it was unrelated to the larger picture, so to speak. Maybe a steep fall over 2-3 days, which is a fairly infrequent occurrence. If this is a viable strategy, how much would the overall market have to fall to get a "good price?" How does one find good candidate stocks assuming this may be a viable strategy? Looking for a "swing trade" of between weeks and months.

Thank you in advance to all who respond. Any suggestions, comments, or additional resources are greatly appreciated.

Dave
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We do not have a down market to facilitate that strategy. I knew people who were selling puts on citibank thinking it was way down (in the 30s in around 2008) only to see it go down to a dollar a share. So, if you bought Citibank at a dollar good for you. If you bought stocks after major corrections, you may have done well. I do not have enough data to tell for sure. In any event, I do not think we are "way down". If anything we are getting close to getting way up.
 
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