US QE shrinking will induce the money flow as below :
- China and Japan start to sell 10 years US Treasury, it make a lot money flow back to US, we can watch the ETF of TLT with weak rebond as a sign on this effect, it means the interesting rate jump up and money flow back to US as fast as possible.
- money flow back to US will show on the Indonesia ETF IDX crash yesterday, it needs to be a careful watch on Aug. 27th Indonesia stock market, I estimated the crash will continue to happen on Aug. 27th stock market of Indonesia;
- We also found the India stock can not form its bottom and become weaker;
QE shrinking will absolutely generate a finance impulse response to push money from weaker finance area to stronger one, so Indonesia, India will be the 1st shot and fall to ground, then, Southeast Asia countries will face the same issue due to its finance structure is not stronger enough to face this kind of QE shrinking impact.