The Taylor Report (10/20/20)


Simple Thoughts in Complex Markets

By Bill Taylor, Contributor/CIO-Entoro Wealth

The opinions expressed below are my own & do not necessarily represent those of Entoro Wealth or any of its affiliates

We compare the price of Bitcoin, Ethereum, Gold & the S&P 500. We use the CME Bitcoin Indexes (BRR & BRTI) and the CME Ethereum Indexes (ETH_RR_USD) & (ETH_RTI_USD) for reference as well as the London Bullion Market afternoon price settlement on the digital assets & gold.

10/20/20 Closing Prices:

Bitcoin:  $11,926.71  (+$271.14)
Ether:   $369.65 (-$10.27)
Gold:    $1,903  (+$10.00)
S&P 500  3,443.12  (+16.20)

Trading Summary Notes for Tuesday, 10/20/20:

Great to be included as a regular contributor on the new Digital Wealth News platform. Thanks Publisher Cindy Taylor. Lets step into the last couple weeks of October.

While everyone is watching and waiting for some magical insight to guide them in regards to the INSANE EQUITY MARKETS, have you noticed commodity prices? Inflation harbinger of future price increases. ALSO, as called for here, bitcoin, ether and gold are beginning new moves higher. Just saying. Well, only one (1) week from last week’s Taylor Report and only two (2) weeks until the U.S. presidential election. HOLD ON!

What to do now? (No more hiding under the bed)

First off, I will keep posting my year end price predictions (below) since I am always transparent (right or wrong) and have total conviction. Bold huh?

Year end BTC price? $17,500.

Year end ETH price? $500.

Year end GOLD price? $2,200.

  • BITCOIN has “re-awakened.” That $10,000 area is getting more distant in the rear view mirror. It’s like a volcano. All of a ‘sudden’ it erupts and that’s what BTC is doing. Do I hear rumbling?
  • Well, BTC is just about to march into the $12,000 area. Our short term target has always been $12,500 so get ready.
  • Should, NO WHEN, the $12,500 mark is broken the next target is $15,000.
  • More and more “BIG NAMES” (hey, me too) are speaking bullish. Take note;
  • Michael Novogratz…..Digital Galaxy…….quote “Getting to $50,000 or $100,000 is not crazy,”
  • Raul Pal….former Goldman Sachs and now Global Macro Investor…..quote “I think [$1 million per bitcoin is] about right.
  • OK, those are big targets but I like putting quotes from those guys in cause they agree with me -lol.
  • A host of global central banks are considering launching digital currencies (CBDC) based on ETHEREUM blockchain. Which means ETH may be stepping out from BITCOIN’S shadow.
  • The $330-$370 support area we have called for the last few weeks has held (Yea Bill) and now ETH is knocking at the $400 door.
  • Look for ETH to move to $550 if (when) BTC cracks above the $12,500 level.
  • GOLD is gaining solid strength above $1,900 now. Creeping back up
  • Might see some re-positioning/re-balancing……….selling GOLD (lightening up) and buying (adding) BITCOIN. Actually not a bad idea…..but keep both.
  • Stay long. GOLD near upside target is $2,500……yup, $2,500. Longer term? $3,000-$3,500.
  • Looking ahead, after throwing money (and continuing to print $$$) to ensure a recovery, inflation may soon be on the rise and geopolitical/pandemic risks are only getting stronger. Indeed, inflation IS beginning to rear its head. Positive for GOLD.
  • Now on to the equity market (S&P 500). Its all emotion. Valuations? HA! Earnings? HA HA! Economic predictions? HA HA HA!
  • So let me say the scariest word to all the equity market buyers that expect (and demand) the market go up “constantly;” GRAVITY Enough said (warned)
  • Keep putting some “gentle” shorts out on strength.    
  • S&P 500 “dips” to 2,500-2,600?

Settle In…..Calm Before the Storm

Current trading positions:  LONG BITCOIN,  LONG ETH, LONG GOLD & SHORT S&P 500

Bill Taylor is Managing Director/CIO at Entoro Wealth & is widely published in financial industry media throughout the world