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Below is a brief excerpt transcribed from Tuesday's edition of The Macro Show hosted by Hedgeye CEO Keith McCullough.

McCullough: Yup. China Just Made Up The Numbers - 04.04.2018 China cartoon  1

Lets talk about PMI in China.

So China makes up a number.

For those of you who don’t know what a PMI is, it’s a diffusion index. It’s a survey. You call a guy in China and they just tell you things got better than horrific from last month. But they literally have a number that is pretty much made up.

It's not a "V bottom" in the Chinese economy, its just coming off the low number.

What you really pay attention to are the locals in China who know who are lying and who are not. The Shanghai Comp as an Index closed up 0.1% overnight.

You can see this more broadly with the Australians. When you look at what happened in the Australia Comp you can see that they just took this thing to the woodshed and pounded it overnight.

People ask me, “Hey man why was Australia up the day before?”

Well because we had a bear market bounce. Bear markets bounce bigger than bull markets don’t forget.

So you had a big bear bounce the day before, and then on month end what did the Australians do? They sold it. So now you’re down almost -30% in a downward line.

You’re going to enter the first recession that Australia has seen in over 30 years. And they obviously know the problems with Chinese demand as well.

McCullough: Yup. China Just Made Up The Numbers - 3 31 2020 12 29 38 PM