The Taylor Report (3/23/21)

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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 3/23

Bitcoin | ETH


Neutral for week of 3/23

Gold

Bearish for week of 3/23

S&P 500

3/23/21 Closing Prices:

Bitcoin:  $55,170.85 (-$1,941.21)
Ether: $1,706.06 (-$75.06)
Gold:  $1,718 (-$13.00)
S&P 500:  3,910.52 (-30.07)

Trading Summary Notes for Tuesday, 3/23/21:

What’s new? Unlike last weeks Big Yawn, this week is a Big Big Yawn. So, not much new……….BITCOIN is basically flat for the week and just resting for now…….ETH was down slightly week over week and also just treading water……….GOLD, to,o is basically flat over the week and continues to go nowhere………..And the S&P 500 is also down week to week. In other words…..NOTHING REALLY NEW. Lets call it Spring Break.

Is there a RIPPLE of upside? Seen a RIPPLE in the water lately? I hear a RIPPLE of sound. Just thinking out loud.

What to do now?

Don’t make any new “bets” until this quarter is over. With a week to go, it is uncertain whether market participants will seek to “mark” portfolios up, or perhaps do some selling to lock in quarterly gains. Hold BITCOIN and ETH. Solid upside momentum still in place. GOLD still going nowhere. Hold if you must have exposure, but bonds will give you better performance. S&P 500………….if you are long……..good luck. Sleep well but keep the sell button close.

Trading Thoughts:

  • BITCOIN is heading to MORE new highs…..and beyond. DO NOT BE SHORT;
  • There are huge buyers, and more coming, under the BITCOIN market;
  • BITCOIN short term target $75,000; Next target? $95,000;
  • ETH picking up strong support. Dips to buy are getting shallower;
  • ETH near term target $2,800-$2,900;
  • Longer term ETH price target $4,500. May take a little time, but fundamentals have become more positive;
  • GOLD! Every time GOLD perks up, the GOLD bugs jump up and cheer lead. Then disappointment.
  • GOLD has been replaced by BITCOIN as a safe haven. Sorry GOLD bugs;
  • But it does make nice jewelry;
  • Be prepared to hang on to GOLD for a while. Slipping to $1,675-$1,700?
  • IF YOU MUST OWN GOLD, $1,650 – $1,675 would be a good place to initiate. Otherwise stay neutral.
  • Expect S&P 500 and equity markets to retreat. When markets go down there will be no time to get short. Be ready;
  • 2021 S&P 500 “dips” 2,900-3,000; NO CHANGE!
  • Equities have a whole lot of good news priced in.

    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