Although an 11% correction IS long overdue, what strikes me as strange is the inter-day volatility. I don’t remember seeing anything like the after hours/regular hours price swings of this earnings season before (I’ve been in the market since the early 90’s). I did a Google search on it, and did not come up with anything specific to recent volatility so I am just going off my gut. Still it bothers me that a high frequency trader can carve out his pound of flesh in the seconds before our stock trade goes through, and I guess they are the cause of the recent volatility (yup, I can hear the black helicopters circling my home as I write ;o)
Ever since the 2010 flash crash, I have been concerned that bad things can happen from those guys. Although nothing to my knowledge has happened since then as a result of high frequency trading, I have not seen any reforms to the market to keep it from happening.
That said, I think most of the volatility is for the best. I am gradually adding to quality holdings as the market dips. The magnitude of this dip is nothing unusual historically speaking.