China: Damn the Torpedoes

China’s Politburo has pulled out all the stimulus stops, sending the CSI300 4.2% higher and an index of Chinese developers over 15% higher. Perhaps even more importantly, David Tepper, in a CNBC interview this morning, characterized the move as extremely stimulative and supportive of stocks not only in China but around the world.

US futures are up sharply, answering the question as to whether we’ll get a pullback after SPX recently reached our IH&S target.

This move, which will likely be echoed by the Japanese, should give equity investors confidence to remain long through the US election.

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