In this week’s Dirty Dozen [CHART PACK]  we look at the market shakeout that’s in progress and discuss why we have lower still to go.

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We then go through some monthly charts, check in on the Generals, the US dollar, oil, and a cheap new agey stock trading near historical support, plus more… 

1. Here’s the summary of BofA’s most recent Flow Show report (w/ emphasis by me). 

2. Looking at this chart I think two things (1) that’s a pretty incredible selloff in global debt considering the backdrop relative to similar instances of the past and (2) it’s going to be a very good time to buy bonds soon (next 1-3 months).

3. I can’t decide if this is a chart crime or not but I include it here because it’s pretty with all of the annotations. Personally, I think the inflationary 70s are a poor comparison. We have a very different secular macro backdrop now.

4. Here’s a cut of a report that went out to Collective members two weeks ago. We’re getting the shakeout now. How long or low this shakeout goes is anyone’s guess. I don’t care to predict but rather interpret the holistic picture as it happens. And as of now, we do not have indications of a washout bottom. So lower we go…

5. April is over and we have new monthly prints in. The Qs monthly chart is not one you’d want to buy. April’s close near its lows, means its high odds we head lower in May.

6. In war as in markets… The Generals tend to be the last to catch a bullet. And that’s what we’re seeing here. AMZN is not a chart you’d want to own. This looks like a cyclical topping pattern. 

7. Same with General Google… 

8. tHe uS doLlaR iS loSinG iTs gLobAL REseRvE cUrRencY STatuS bUY bItCOin… We are long DXY in the Collective and will add on technical setups. 

9. Crude (looking at the Dec 22’ contract here) has formed an outside-inside (o-i) pattern. The monthly chart is in a clear uptrend but momentum has definitely slowed. Maybe we get further sideways consolidation, giving us a monthly o-i-i breakout pattern before another leg up, I don’t know. We’ll just have to watch and let the chart develop. 

10. Interestingly, oil’s five consecutive monthly bull bars have historically led to poor follow-on returns. However, five consecutive monthly bull bars are rare and so this gives only gives us an N of 5. 

11. USDCAD’s monthly chart needs to be on your radar for a long setup. Our Yield Differential Oscillator chart below shows yields moving in USDCAD’s favor (yield chart shows CADUSD). While our HUD matrix shows positioning and seasonality are strongly favorable to being long USDCAD.

12. Not being super active in equities at the moment but one stock I plan on revisiting soon is the online streaming/media play Gaia Inc, GAIA. It’s back near major 20-year support while revenue and earnings continue to grow. The company has a strong balance sheet and I’m thinking all these ARKK bagholders will be seeking GAIA’s stress-relieving meditative programming in the months ahead.

Thanks for reading.

Stay frosty and keep your head on a swivel.