Why did the market plunge again today?

Once again, hedge funds and short-selling are the most likely big culprits. Sure, the economy is crappy, but that never moves markets by itself. Sure, retail investors are probably continuing to dump their mutual funds, but that negative cash flow is rather minor compared to the money that the hedge funds still have to throw at the market.

To put it simply, all a hedge fund has to do is electronically send a "sell-short" order to an exchange and down the price goes, rinse and repeat. It is really that simple. The flip side is that within a week or two we will see another massive rally or two or three.

Call it mindless volatility, but otherwise ignore it, unless you want to pick up some bargains.

-- Jack Krupansky