Shanghai Surprise Pops China 5% – Is Everything Awesome Again?

August 27, 2015 at 08:27 AM EDT

Wheeee, what a ride! From a new low at 2,920 (down 42%) all the way back to 3,083 in 45 minutes was the close of the Shanghai Composite this morning as China’s government resumed its intervention in the stock market this morning. China had halted its stock-market intervention in the first two days of this week as policy makers debated the merits of an unprecedented rescue, according to people familiar with the situation . Even though the move was clearly fake, Fake, FAKE , it was still enough to excite investors as Asian and European markets followed China's lead higher and now EVERYTHING IS AWESOME again and the US Futures are up another 1% on top of yesterday's spectacular move. While we were looking for a bounce off Tuesday's drop back to test 1,950 on the S&P 500 , this is not the way we like to make our Strong Bounce lines (faked with stimulus and loose money talk). Still, fake or not, we'll take it as it only enhances our performance. In yesterday's post, we had long trade ideas for Apple (AAPL), which popped 5.75%, Baker Huges (BHI), which popped 3% and Southeby's (BID), which gained 1%. IN PROGRESS

Embedded image permalink Wheeee, what a ride!

From a new low at 2,920 (down 42%) all the way back to 3,083 in 45 minutes was the close of the Shanghai Composite this morning as China’s government resumed its intervention in the stock market this morning. China had halted its stock-market intervention in the first two days of this week as policy makers debated the merits of an unprecedented rescue, according to people familiar with the situation.

Even though the move was clearly fake, Fake, FAKE, it was still enough to excite investors as Asian and European markets followed China's lead higher and now EVERYTHING IS AWESOME again and the US Futures are up another 1% on top of yesterday's spectacular move.

While we were looking for a bounce off Tuesday's drop back to test 1,950 on the S&P 500, this is not the way we like to make our Strong Bounce lines (faked with stimulus and loose money talk). Still, fake or not, we'll take it as it only enhances our performance. In yesterday's post, we had long trade ideas for Apple (AAPL), which popped 5.75%, Baker Huges (BHI), which popped 3% and Southeby's (BID), which gained 1%.

IN PROGRESS