This is the most volatile stock market we have seen in a few years, so you would be wise to make your stock picks very carefully right now. This is a time where you are probably more likely to lose your money quickly than get rich fast. There are certainly opportunities out there to make money, but you have to do your research.
So what type of stocks would I consider in this kind of environment? I like companies that are either buying back stock, or have reported very strong earnings trends of late. A stock that has both trends is great in my book. Why is a stock buyback good in this environment? For a couple of reasons, it shows that the company has the balance sheet needed for a stock buyback, and the buyback is likely to put somewhat of a floor in the stock price in the event of a large market drop.
Several large proven companies have recently announced large buyback programs. Conoco Phillips (NYSE: COP) announced a $15 billion dollar buyback in July, and Johnson and Johnson (NYSE: JNJ) announced a $10 billion dollar buyback in July as well. Both stocks have done better since that period than has the average stock. Proctor and Gamble (NYSE: PG) just last Friday announced a massive $30 billion buyback, and the stock sits pretty close to a 52 week high.
Some of the aerospace companies such as BA and LMT have shown tremendous 
earnings growth of late due to great demand for their products, and this is another area that is likely to do better than the market through this volatile period. Several times in the last couple weeks when the Dow has been getting trounced, BA is one of the strongest performers in the Dow.
I don't believe that this market is a market to try to catch stocks dropping like a rock, or find the newest hot stock available. This is a market where dividend-plays, stocks buying back stock, and solid proven stocks with earnings momentum are your safety net.
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