CHART OF THE DAY: The Short China Outlook

Chinese Stocks (Shanghai Composite Index) were down another -0.9% overnight and continue to make a series of lower-highs from their recent #Quad1 Cycle Peak.

As you can see on our proprietary Quad Map (slide 20 of the current Hedgeye Macro deck):

A) #Quad1 in Q1 of 2021 was The Cycle Peak for the Chinese economy… and
B) It was the 4^th straight quarter of #Quad1 after being the 1^st major economy to accelerate out of COVID

Why did they #accelerate out of COVID Cycle Lows first? A simple answer would be that they got COVID first, then they gave it to the rest of the world.

A more well-rounded, Full Cycle Investing, answer would include that the Chinese economy last peaked into the end of 2017 and was slowing throughout 2018 and 2019, PRE-COVID.