The Taylor Report (8/10/21)

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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 8/10

ETH BTC


Neutral for week of 8/10

NONE

Bearish for week of 8/10

S&P 500 GOLD

FIRST TIME SINCE AUGUST 2016……..GOING BEARISH ON GOLD……BITCOIN HAS REPLACED GOLD

8/10/21 Closing Prices:

Bitcoin:  $45,449.23 (-$376.79)
Ether: $3,147.92 (-$20.01)
Gold:  $1,720 ($0.00)
S&P 500:  4,436.75 (+4.40)

Trading Summary Notes for Tuesday, 8/10/21:

What’s new?

The Delta variant of Covid is imposing new potential slowdowns…..US economy “on fire” with inflation rising even higher…..interest rates tick up slightly…..AND BITCOIN jumps up just short of 20% (week on week)…..the $30K area is history with a 50% increase to today’s $45K area…..ETH follows with a 25% gain (again, week on week)…..GOLD gets dumped…..huge 5% drop…..S&P 500 creeps its way higher (again…..yawn) to more all time highs…..are there any “bears” left out there/

HAS THE DELTA VARIANT OF COVID REPLACED MONETARY POLICY??? SLOW THE ECONOMY WITHOUT HAVING TO RAISE INTEREST RATES? STAY TUNED.

What to do now?

Buy BITCOIN….if you missed buying (or adding to) BITCOIN in the $30K area, don’t miss the $40K area…..BTC is rolling and heading for new all time highs…..ETH actually stronger than I thought…..$3K was no problem…..maybe (MAYBE) a pullback to the $2,00 area?…..technically ETH looks great…..GOLD.…….no more neutral…..no more hold…..its a sell…..to many bulls looking for positive GOLD news that doesn’t make GOLD go up…..S&P 500…..stay short, get short…..market is running out of gas…..Sept/Oct?…..be ready or miss out on huge bear move.

IGNORE TALK OF CRYPTO REGULATIONS…..IT WON’T MATTER. FEAR NOT!

Trading Thoughts:

  • BITCOIN selling has been replaced by buyers;
  • BITCOIN still heading to $75,000…..then $95,000…..and beyond;
  • Near term “steps/targets”$45K…..(Got There)…..next $65K/$75K and then$95K;
  • Institutional acceptance and demand for BITCOIN really strong long term;
  • ETH rebounded nicely after breaching $2Ksolid close back above $2K resumes upside;
  • Short term upside target $2,500-$3,000; (got there)…..new target $3,700-$3,900
  • Money continues to be coming out of GOLD;
  • GOLD will continue to struggle to compete with BITCOIN and fight off higher interest rates
  • 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
  • GOLD…..NO POSITION

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