The Taylor Report (2/9/21)

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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


Bullish for week of 2/9

Bitcoin | Ethereum

Neutral for week of 2/9

Gold

Bearish for week of 2/9

S&P 500

2/9/21 Closing Prices:

Bitcoin:  $46,804.73 (+$3,023.52)
Ether:   $1,752.46 (+$19.72)
Gold:  $1,827  (+$4.00)
S&P 500:  3,911.23  (-4.36)

Trading Summary Notes for Tuesday, 2/9/21:

What’s new? R U KIDDING?? BITCOIN began an unprecedented move higher this past week. From the low $30K area to testing $50K. Elon Musk (Mr. Tesla) just committed $1.5 BILLION to BTC. ETH is challenging the price of GOLD. The CME Group launched ETH futures yesterday (2/8) which will bring more liquidity to ETH. GOLD is struggling, having its ego crushed by realizing it has been replaced by BITCOIN. The “Reddit Gang” got everyone excited about equities (again…..and for now) helping push the S&P 500 to new highs. BIG PAST WEEK.

A BIG SURPRISE TO LOOK FOR COMING UP? APPLE + BITCOIN.

SECOND “SURPRISE?” ETH SURPASSES GOLD IN PRICE!

What to do now?

Continue to buy BITCOIN. The dips are becoming fewer and more shallow. ETH is gaining strong momentum. It is not attracting the “big names” but will become a more “affordable” BITCOIN alternative……accumulate. GOLD is treading water. Hold or reduce positions. S&P 500. OK, been wrong for….”quite some time” but if you own the other things (BTC, ETH, even GOLD) being short the S&P 500 hasn’t mattered. Stay short.

Trading Thoughts:

  • BITCOIN is about to go super parabolic;
  • A spectacular upside move is coming. Either you are ready or not. Do NOT be short.
  • There are huge buyers under the BITCOIN market;
  • BITCOIN short term target $48,000-$50,000; ITS HERE, NEXT TARGET…..$90,000-$95,000…..QUICKLY;
  • ETH now gaining new followers. In effect, a “cheap” BITCOIN;
  • CME GROUP ETH FUTURES began FEB 8TH. Should add interest, liquidity and a way to hedge. Very bullish;
  • ETH short term target $2,000; Then…$2,800;
  • GOLD! Interest in GOLD has waned and looks like “dead money”;
  • GOLD has been replaced by BITCOIN as a safe haven;
  • Be prepared to hang on to GOLD for a while; Slipping to $1,750??
  • Expect S&P 500 and equity markets to retreat. Very unexpected decline may start early;
  • 2021 S&P 500 “dips” to 2,500-2,600? LETS CHANGE THAT TO 2,900-3,000 ;

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

Entoro Wealth offers SMA’s to accredited investors that include Bitcoin, Ethereum, Gold and short S&P 500


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