The psychology simply changed.

Wow, I like that headline even more than my earlier one. When you see stocks, big-cap stocks, like Microsoft (MSFT - commentary - Cramer's Take) and Exxon (XOM - commentary - Cramer's Take), bouncing around like Mexican jumping beans, selling off and then rallying on the same news, you have to start concluding, as I have, that something is very wrong right now with this market.

People are way too quick to pull the trigger based on absolutely nothing.

Last night I was scrambling to find out what the heck was wrong with Microsoft and why it was down. After checking with maybe 10 really good guys and reading the conference call highlights and the snap research, it occurred to me that I knew exactly what was wrong: nothing!

It was just that the psychology was really horrible and the people reporting on it pronounced it a disappointment without the facts -- most importantly, the fact that the accelerated buyback trumped the guidance.

I have been battling against taking action on the guidance ever since the class-action game came back in full force, despite a change in the law that was supposed to make such suits frivolous. Once again, those lawsuits are anything but frivolous, which means that if I were the lawyer to a major company, I would have to tell the CEO, "Please, please, be downbeat or otherwise we will be back in deposition-land."

Until others understand that once again, we are in the grips of a new litigation wave, I believe that people will continue to parse guidance way too closely.

People, actions, not words, are the way to go, and Microsoft's actions were terrific.

The media has a responsibility to figure this stuff out without abetting the know-nothing hair-trigger traders who know so much less than they think they do.

Alas, though, they don't have the time or the inclination to even know what the metrics are. So they wing it.

And you lose money listening to the winging.

Random musings: Hope to see some of you tomorrow at the Star-Ledger/Commerce Bank personal finance conference. I'll be delivering the keynote speech at 9 a.m. EDT at the New Jersey Convention and Exposition Center in Edison, N.J. This will be my last public speaking appearance of the year, so don't miss it -- and I'll be signing copies of my books, so come say hello -- I'll be glad to see you.

1 What would best describe your stance heading into the coming week of trading? Bullish Bearish Neutral 2 Which of these sectors do you think is set to move up in the coming week? --Choose One--Aerospace and DefenseAirlinesAutomobilesBeverages and Food ProductsBiotechnologyCommercial BanksComputers and PeripheralsConsumer NondurablesEnergy Equipment & ServicesHMOs and HospitalsHomebuildingInsuranceIntegrated OilInternet, Software ServicesInvestment Bankers and BrokersMediaMultiline RetailPharmaceuticalsPrecious MetalsSemis, Semi EquipmentTelecom EquipmentTobacco and AlcoholWireless CommunicationsUtilities 3 Which of these sectors do you think is set to move down in the coming week? --Choose One--Aerospace and DefenseAirlinesAutomobilesBeverages and Food ProductsBiotechnologyCommercial BanksComputers and PeripheralsConsumer NondurablesEnergy Equipment & ServicesHMOs and HospitalsHomebuildingInsuranceIntegrated OilInternet, Software ServicesInvestment Bankers and BrokersMediaMultiline RetailPharmaceuticalsPrecious MetalsSemis, Semi EquipmentTelecom EquipmentTobacco and AlcoholWireless CommunicationsUtilities View the results without voting