It goes without saying the market's been carnage all week.

There's no shortage of noise out there.

So we want to keep it simple and share three key charts and the stories they're all conveying.

This is the video recording of our May 6, 2022, All Star Charts Crypto Weekly Strategy Session.

We couldn't help but notice the relentless bid in Bitcoin $BTC yesterday morning while equities had a flat start. Leading up to the FOMC announcement, Bitcoin front-ran the rally in US equities.

The two have been heavily correlated in recent months; evaluating the co-movement between the two is proving to be an insightful data point for stock and crypto investors alike.

There have been few trading opportunities in this messy tape beyond rare exceptions over short time frames.

With crypto markets shackled to weak equities, it's been a challenge to find favorable opportunities in Bitcoin $BTC and the individual altcoins.

But, in yesterday's note, we entertained the possibility of near-term upside following the pricing in of the upcoming Federal Open Market Committee meeting and the US dollar hitting resistance.

Given the favorable risk-versus-reward at current levels, we like taking a tactical long, looking to play the trading range Bitcoin finds itself in.

For this trade, we're solely leaning on Bitcoin to execute, as most alts are messy and in the process of breaking down. Those are both characteristics we want to avoid when searching for new longs.

Further, Bitcoin has outpaced its counterparts recently, as seen through Bitcoin dominance.

The risks and key themes we discussed in our last crypto report remain unchanged.

Price action has been chopping in the high 30,000s, and there's little to update.

We're closely monitoring the tight trading correlations to traditional finance. Despite strong spot flows, this remains the most pressing driver of price action to date.

With few actionable opportunities, we're sitting back and weighing the probabilities of a number of scenarios.

Summary of Topics

This is the video recording of our May 1, 2022, All Star Charts Crypto Weekly Strategy Session.

Not everyone has the luxury of slinging cryptocurrencies in the world of DeFi protocols, exchanges, and wallets.

Others have to lean on traditional investment vehicles to gain crypto exposure.

There's a ton of potential candidates in the stock market to lean on to express a given crypto thesis, but it's all about choosing the right names.

We've been pointing out the dispersion of performance between crypto equities and the underlying cryptocurrencies themselves; the stocks have underperformed, while the coins have outperformed.

But it isn't that simple -- there's some level of nuance involved.

As has been the theme for some time, there's been little in the way of actionable trade ideas.

Last week, we had the following message:

As we’ve said before, one of the big characteristics that often differentiates good traders from mediocre ones is the ability to sit out when necessary.

Correlations to weak equities remain highly elevated. We’d like for those to dislocate before getting overly optimistic in the near term.

When it comes time to put money back on the table again, it’ll be obvious. Otherwise, we’ll continue being patient.

Nothing has changed.

It's been a week since our last crypto market report.

Since then, there's been nothing in the way of actionable developments.

This note will act as a short interim update.

This is the video recording of our April 22, 2022, All Star Charts Crypto Weekly Strategy Session.

In a tape as messy is this, it pays to be patient and only focus on A+ setups.

The names emerging from bases on solid volume are the ones you want to lean on. By slinging names in messy ranges, you'd only be asking to get whipsawed.

We can't help but notice the relative strength coming out from ApeCoin $APE and STEPN $GMT, which we mentioned a few days back.

Both have real nice shapes emerging from their post-ICO bases:

Looking tactically, they both offer us some decent risk-versus-reward for a speculative bet.

There are times when you need to trade like a pig. With these macro conditions, now is not that time.

In those roaring crypto bull markets we've all come to know, bravery is more important than brains. But, in periods like these, traders who are patient get rewarded.

When the market inevitably improves, you can get back to making money instead of picking up pennies to recover from big drawdowns by avoiding the mental hurdle of overtrading.

As we've said before, one of the big characteristics that often differentiates good traders from mediocre ones is the ability to sit out when necessary.

There's that old adage that there are only three short periods each year to make money. Or consider the classic Paul Tudor Jones quote that “markets trend only about 15 percent of the time; the rest of the time they move sideways.”

We can't reiterate this enough; there's a huge difference between looking for a setup and seeing one.

If you go into the market with preconceived notions about how things should be instead of seeing them for how they really are, you might as well go take a punt on the dish lickers.

Follow the money flow.