I recently wrote a post about "psychoanalyzing the market". Well you didn't need to be Sigmund Freud to understand today's action. Today the market was a knife-wielding homicidal psychotic hearing voices telling him to slash everyone within reach. Today, the market was Charles Manson, Norman Bates, and Freddy Krueger all rolled into one. The 5 minute chart of Accenture below tells it all:
Does anyone seriously believe that ACN dropped in value from $38 to one cent in less than a minute? That's simply nutso.
The market is now clearly off its meds. The best course of action at this point is simply to stay as far out of harm's way as possible until the men in the white coats show up to take this lunatic away. Until then, I will continue to sit on the sidelines and watch the carnage. The last three days reduced my YTD profit from 13% to 7.66%. I'm just glad I was 40% in cash. The damage could have been much much worse. I'm hearing of people having their accounts liquidated - it's a mess. This is October 2008 all over again.
Yesterday, with the Dow at 10,868, I wrote that we'd see 10,610 before we went higher. I just wasn't expecting it to happen all in about 30 seconds worth of trading! Holy moly.
Oh, and thanks, Greece - for nothing.