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Editor's Note: Below is a chart and brief excerpt from today's Early Look written by Hedgeye CEO Keith McCullough. Click here to learn more.

CHART OF THE DAY: One Of The Most Important China Charts - zs2

In today’s Chart of The Day (slide 94 in our Q2 Macro Themes deck) I’m showing one of the most important ROC (rate of change) charts there are when it comes to measuring and mapping the Chinese economic cycle: 

A) The black bars = the 2yr avg nominal growth rate of GDP in China’s Secondary Industries in the comparative base period
B) The red line = the actual ROC (year-over-year growth rate) reported by the Chinese government 

As you can see, the Chinese Red Line ramped during the 2016 Chinese stimulus: 

A) Because it was the largest Net Liquidity provided as a % of Chinese GDP in history… and
B) It’s easier for the ROC of GROWTH to ramp when the base effects (black bars) are EASING 

CHART OF THE DAY: One Of The Most Important China Charts - Can Chinese Growth Rebound with the Toughest Comp in the Rearview