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Monday, October 3, 2022

The legendary chart for 2022!

What's the legendary chart for 2022?

The chart above is the legendary chart for 2022 because it has explained the outcomes for USD, treasury yield, crypto (bitcoin), and Nasdaq for 2022.  We posted this chart in January 2022.

http://sg-stock.blogspot.com/2022/01/analyses-of-us-main-street-economic_9.html

Let's go through the analyses in steps.

We stated that China would be doing QE for 2022.  What's the effect of QE? The QE would impact china's credit impulse first before affecting the USD.

Let's take a look at the relationship between China's credit impulse and the USD.  The chart below showed an inverse relationship.



With this inverse relationship understanding, the investors will monitor china's credit impulse for the USD trajectory.  Let's look at the latest China credit impulse and USD index.



Next, we stated that the US would be doing a QT.  What's the effect of QT? The QT would impact US Fed rates first, then US treasury yields, and subsequently the stock market (particularly Nasdaq) and crypto (bitcoin).

Let's look at the relationship between Nasdaq and the US 10-year treasury yield.  We can see from the chart that there is an inverse relationship.


Let's look at the relationship between bitcoin and Nasdaq.  We can see from the chart that there is a positive correlation.



Let's look at the Nasdaq and bitcoin charts in an interest rate-rising environment (2022).



As you can see, our legendary chart had already explained the outcomes for USD, treasury yield, Nasdaq, and bitcoin.

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