The Taylor Report (11/11/20)


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

11/10/20 Closing Prices:

Bitcoin:  $15,183.43  (+$118.52)
Ether:   $443.16 (+$2.11)
Gold:    $1,866  (+$7.00)
S&P 500  3,545.53  (-4.97)

Trading Summary Notes for Tuesday, 11/10/20:

What’s new? U.S. presidential elections are over BUT not quite closed out. The legal challenges are still to be played out. Pfizer announced positive test results for a vaccine to put Covid-19 behind us……AND markets went even more insane. Bitcoin jumped up over $2,000 since last week. Ethereum up over 10%. Gold dropped $100 (-5%) and equities soared. Ho Hum, its 2020.

What to do now? Buy the dip in gold. Uptick in interest rates hurt gold. BFD! Inflation is alive and well. Bitcoin and ETH are beginning a MAJOR move higher. OK to keep adding long positions. Bitcoin will challenge the old all time highs ($20,000). Jump into the equities at your own peril. Enough said.

But first, I am going to 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 worked its way through the $13,000 area and hit (exceeded) our target of $15,000.
  • If you are a touch nervous, might want to “lighten up” a little around $15,000.
  • BTC might pause for a bit around this level and consolidate the recent gains. Next target……a test of $20,000.
  • I recently said a lot of fintech companies have been allocating BITCOIN to their cash reserves. Like Square, MicroStrategy, etc. to the tune of just shy of $1B. PayPal just announced they will accept crypto transactions. Positive.
  • Even bigger names are getting the BITCOIN bug; just yesterday Stanley Druckenmiller said he believes BTC is the best asset class to be in. Bill Miller and Paul Tudor Jones are buyers. Super positive.
  • ETH is still following BITCOIN.
  • Think of ETH being silver to BTC being GOLD.
  • Look for ETH to move to $500- $550 as BITCOIN moves above the $15,000 level.
  • GOLD had rallied back above $1,900, touching $1,950, till yesterday (Monday) and then dropped to $1,850. GOLD doubters and weak hands.
  • THOUGHT! GOLD traders/investors scaling back those positions and moving into BITCOIN. Makes sense.
  • Stay long. GOLD, buy the dips, upside target is $2,500……yup, $2,500. Longer term? $3,000-$3,500.
  • Looking ahead, whatever happens after the U.S. elections the same geopolitical factors are with us and inflation is picking up. Positive for GOLD.
  • Now on to the equity market (S&P 500). IT’S INSANE. CRAZY. I am wrong for a while on timing…..and really, not stubborn.
  • Keep putting some “gentle” shorts out on strength.    
  • S&P 500 “dips” to 2,500-2,600?

Current trading positions:  LONG BITCOIN,  LONG ETH, LONG GOLD & SHORT S&P 500 (by the way, that’s the strategy for my Entoro Wealth Gray Swan Fund……it works)

The Taylor Report Bull/Bear Barometer remains the same on 11/4/20 as it was when last updated on 9/3/20. See below for a visual depiction of my long term recommendations.

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.

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