Apple Earnings Sucked Into Black Hole

and the focus was on guidance, released into a blinding snowstorm and hastily gathering energy. Sell orders triggered more sell orders. Prices collapsed as a distressed market fed on itself.

Risk management and stop loss systems around the world had been triggered by Societe General's sell actions early in the week.

Financial institutions with liquidity problems have put their traders on a "short leash", leading to imposition of daily trading limits which shorten investment horizons. Think of troubled hedge funds and institutions. Naturally they will take measures to protect themselves from what has increasingly become daily news shocks (bank write downs, rogue traders, subprime/housing news, falling dollar, dogs and cats living together).

Naturally such institutional actions exacerbate volatility in markets.

So, you betcha, this driving wind is fear of the future -- fear of liquidity shocks, fear of recession and falling consumer spending, fear of rising oil and commodity prices, etc. These events may or may not come to pass but fear of them causes a run on the equity market today.

And, don't cha know, many good companies with excellent fundamentals and growth prospects are caught up in the blizzard.

But snow melts. Spring will arrive. Now it's time to venture across the river and visit Winter Carnival.