If the market wasn't already tricky enough to trade with major news events on the agenda we seem to have another blowup of the computer algorithms this morning. There is crazy action in stocks like 3D Systems (DDD), NetSuite (N), RadioShack (RSH), American Reprographics (ARC) and China Cord Blood (CO). There is no news, but the computers apparently went crazy and are pushing the stocks around wildly.
Knight Capital is supposedly "investigating."
The problem with this sort of thing is that it just destroys all confidence in the market. Why bother with fundamentals or charts if the computers are just going to push things around as they please? Is there any reason to be surprised that individual investors continue to flee the market?
Like many others, I'm just standing aside and waiting to see if some logic returns to the action. I consider myself to be a speculator and make carefully considered bets. When the market is nothing more than a slot machine I'm not going to bother.