Stocks fell early and often Tuesday as the situation in the eurozone continued to deteriorate. 

The Greek Bailout 2.0 plan is being jeopardized by weaker-than-expected​ participation in the country's debt swap offer and fears that its failure would result in €1 trillion in losses for European banks. Also adding to concerns is word that Ireland could require a second bailout package -- something that might not be forthcoming if the Irish reject a strict new fiscal austerity pact.

The result is what's set to be the worst market performance since December and the breaching of significant technical support levels. By all indications, the losses are just getting started.

Here's how you can profit from the emerging downtrend.

I've already said a lot about the intractable problems being faced by Greece, so be sure to review my recent blog posts. Overall, the country is headed toward a "hard default" -- the first in 60 years for a developed country -- and a very likely exit from the eurozone. By restoring its national currency, Greece can promptly devalue it and restore its economic competitiveness by making its exports and tourism industry more attractive to foreigners.

The problem of Ireland is a new wrinkle that has taken the market by surprise.

And as a result, people are selling and selling hard. In the process, a number of important foundations of the post-November uptrend are getting whacked:

• Cyclical, economically-sensiti​ve stocks are underperforming non-cyclical defensives on a scale not seen since the fallout from the collapse of Lehman Bros. back in September, 2008.
• Breadth, calculated as the percentage of NYSE stocks above their 50-day average, is plummeting in a way not seen since November. 
• Declining issues are outpacing advancing issues in a way not seen since last August's market collapse.
• And the CBOE Volatility Index ($VIX), Wall Street's "fear gauge," has reached an extreme not seen since October.

For nimble traders looking to get in on the action, emerging market stocks is the latest group to roll over and suffer from a bout of severe underperformance thanks to safe haven inflows into the U.S. dollar. When the dollar does well, foreign stocks and commodities tend to suffer.

Monday, I added exposure to this by including the ProShares UltraShort China (FXP) in my Edge Letter Portfolio. Existing positions include a short in AKSteel (AKS), up nearly 17% since I added it on Feb. 14, and a short in Mechel Steel (MTL), up 14.2% over the same period.

For long-term investors, the best strategy would be to move to cash and wait out the storm. If that's not possible, I recommend a rotation into utilities and consumer staples -- areas that tend to limit their losses in situations like these. Examples include Duke Energy (DUK), which offers a 4.8% dividend.

Check out Anthony's investment advisory service The Edge. A two-week free trial has been extended to MSN Money readers. Click here to sign up. Contact Anthony at anthony@edgeletter.c​​om and follow him on Twitter at @EdgeLetter. You can view his current stock picks here. Feel free to comment below.