We may think that Jim Cramer is full of BS, but he has more knowledge about how markets work and what he says is not just a bunch of hype. The speed of the sell-off on Tuesday was far too fast for humans to be part off. I see them as Algorithms being programmed to sell on certain indicators before the herd gets the same idea. These computer-driven moves will always happen and they are run by hedge funds, that can afford to create the programs in the first place. Flash Crashes work this way which has happened many times before, but they happened in a bull market when after the Flash Crash stocks always went higher. This time that trick will not work if Investor Joe/Jane starts to hate this market and refuses to hit the “Buy” button.
I guess everyone has to learn how to code Algorithms and create AI robots to do all the trading for us.