Lower your stop on the China Life Insurance (NYSE: LFC) short to USD62. The short has been working great for us, and with today’s weak market action, it has dropped even further.

We’re up close to 40 percent on this short, and by lowering the stop, we’re locking in a 27 percent profit. Remember that the stop is being placed loosely because the trade is a portfolio hedge. The same goes for the HSBC (NYSE: HBC) short, which new readers still have time to enter.

Market sentiment is still in the dumps. The most interesting action, however, is in the currency markets where international trading is pushing the US dollar lower into the abyss. I’m not you typical dollar bull, but the situation is alarming because the Japanese yen has hit a 10-year high against the dollar, and the euro is also advancing strongly.

The problem is that this is happening in a straight line. Somehow the dollar has to react and bounce to stabilize the global Forex markets. The long-term consequences for the greenback are rather gloomy. It seems that the US monetary policy is loosing credibility, which will be difficult to restore to previous levels.