Panic in China

China just cut rates by 1.08%, the most since 1997. It's panic time in China. Predictably, this had juiced the markets. The Shanghai 25 has rebounded to almost 1900, from its low below 1700. I think this is a great opportunity.

Trade: bought FXP at $53.61. I think this is just a temporary bounce. We'll see what happens though, now that it looks like the Fed is engaging in direct monetization. Anything can happen.