Shanghai fell 6.5%..............to an actual MEASURE to CURB RAMPANT OUT OF CONTROL speculation in Chinese stock markets.
Shanghai had RISEN 192% in the last 2 years.............so a pullback of 6.5% or more is desireable for that market.
The DROP in Shanghai is a local event..............the MEASURE is now in place to CONTROL 300,000 new accounts being open DAILY.............
Hong Kong & Tokyo had very MUTED reaction of less than 1%...........Europe is in the same MODE down les than 1%.
Futures in US is DOWN 6 on S&P & 9 on Nasdaq @ 6.30 AM est.......which is just a YAWN ....so I interpret.
Any weakness @ open should be viewed as BUYING opportunity.
Today may be a good time to sell the WEAK stocks and buy strong stocks.
Portfolio shuffling is ALWAYS a good IDEA.
I do NOT expect any MAJOR reaction to Shanghai drop......the USUAL WEAK open and then REACTION to Fed Minutes will take over the TREND of trading.
So get your thinking cap ON & do some BUYING/CHANGES for your portfolio.
Please do your OWN due diligence.
Stay DIVERSIFIED.
BLOG does not give buy or sell.
Good luck on today's trading.
Saleem
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