Funda-MENTALs for the Short-Term?!

The futility of buying or selling stocks in the short-term, on fundamental news/data, was laid bare by today's Shanghai market action!

THE NEWS:

"China Government Moves to Curb Lending
China has tightened limits on mortgage lending and plans to roll out a new tax on home sales, acting once again to cool a property market that some fear is frothing into a bubble. The required downpayment for a first home purchases rises to 30 percent, up from 20 percent, while purchases of second homes will require a 50 percent downpayment, up from 40 percent. Loans for purchases of third homes are banned, said the announcement on the government's website."

MARKET REACTION:

 Up 1.72%!

And just a few weeks ago, this same market would've dived on such news.

China market will be closed for the whole next week, as the population there does its' yearly mass migration. Traders might wanna sit out, and wait for a break above 2700 before going long.

All the best!