China Does Not Raise Interest Rates

It had been expected that China would increase interest rates to curb growing inflation as indicated by a 5.1% CPI, however, no such rate hikes were implemented over the weekend. As a result of the non-action, the Shanghai Index soared up almost 3% and equities around the world are looking strong.

Amidst this news, and the fact that the up-trend is still intact in US markets, there is no indication the market has topped yet, so it is still early to be short this market. Any shorts now are best as day trades. If you do insist on starting a swing short position ahead of a confirming signal, just make sure you have some hedge to the long side.