The Taylor Report (6/1/21)

531

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 6/1

ETH BTC GOLD


Neutral for week of 6/1

NOTHING

Bearish for week of 6/1

S&P 500

6/1/21 Closing Prices:

Bitcoin:  $36,877.77 (+$318.84)
Ether: $2,614.96 (+$83.17)
Gold:  $1,891 (-$4.00)
S&P 500:  4,202.04 (-2.07)

Trading Summary Notes for Tuesday, 6/1/21:

What’s new?

FUD (fear, uncertainty, doubt)………….Stabilization over the Memorial Day long weekend…..End of Month (May) came and now it’s June….BITCOIN had one of its worst months ever dropping +/- 35%……….ETH held pretty well, only off less than 10% for all of May…….GOLD picked up a couple hundred bucks in May……S&P 500 inched up a bit for May……….BUT, over the last week, including the 3 day weekend, NOTHING HAPPENED. Dead……….not unexpected but maybe quiet summer markets have set in?

HAVE BITCOIN “TRASH TALKERS” AND BITCOIN “BULLISH DIP BUYERS” REACHED EQUILIBRIUM NOW?

What to do now?

Let everything settle down………the Bull/Bear BITCOIN standoff may take a while to conclude……..if you’re a HODL’R congrats……..the “super dip” here around $35K for BITCOIN looks good for a buy…..if you still aren’t sure….go to the beach and relax…..end of second quarter (June) may see some upside BITCOIN markup………ETH looks good to add to or initiate new buys…….remember ETH powers NFT’s and maybe even some CBDC’s……….GOLD looks to challenge $2,000 again (GOLD always seems like slow motion compared to BITCOIN)…..less volatile for sure………S&P 500? I’m a bear (and have been wrong) so my thoughts are pretty meaningless.

GET THE MEDIA TALKING HEADS TO QUIT TALKING ABOUT CRYPTO. THEN IT WILL AGAIN BE TIME TO HIT NEW HIGHS. (They need a new pandemic)

Trading Thoughts:

  • BITCOIN will always be the “go to” asset for institutions. Fundamentals still intact;
  • Expect legal, regulatory and tax clarity from the SEC on BITCOIN soon;
  • Mid-$30K area needs to hold for a while and form a base. Patience;
  • BITCOIN still heading to $75,000……………then $95,000; STICKING WITH IT.
  • ETH took a big hit and shook many investors out;
  • Low $2K area great entry/add to point. If you missed the recent upside move, here’s your chance;
  • ETH short term target $4,200;
  • Longer term ETH can see $7,500. Be patient;
  • Money being re-allocated from BITCOIN to GOLD. Not entirely, but owning both makes sense;
  • GOLD is being “re-discovered” by institutions after breakout;
  • GOLD new target $2,500;
  • Could GOLD see $5,000? Let’s wait and see;
  • 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” to 2,900-3,000; NO CHANGE!
  • Equities have a whole lot of good news priced in; valuations are way too extended….too much margin holdings too. WARNING AGAIN!

Current trading positions: 

  • LONG BITCOIN
  • LONG ETH
  • SHORT S&P 500
  • LONG 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