The Taylor Report (8/24/21)

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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 8/24

ETH BTC


Neutral for week of 8/24

NONE

Bearish for week of 8/24

S&P 500 GOLD

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

8/24/21 Closing Prices:

Bitcoin:  $48,554.29 (-$1,476.44)
Ether: $3,243.55 (-$99.61)
Gold:  $1,795 (+$2.00)
S&P 500:  4,486.23 (+6.70)

Trading Summary Notes for Tuesday, 8/24/21:

What’s new?

New? Same old, same old…..Covid Delta variant creating havoc and concerns…..Afghanistan withdrawal headaches ….. Summer coming to an end……yadda, yadda yadda ….. BITCOIN hits $50K as rally continues ….. MicroStrategy bought another $177M of BTC ….. ETH also keeps upside momentum…..coming close to $3,400 on strong demand…..GOLD…..yes GOLD actually perked up (slightly) and is over $1,800 on hopes interest rates stay low…..and S&P 500 took a big dip…..dip buyers bought the dip…..S&P 500 hits new all time highs…..again, yawn.

PART OF MONETARY POLICY?? SLOW THE ECONOMY WITH DELTA VARIANT FEARS LETTING FED NOT HAVE TO TAPER…..YET.

What to do now?

“If it ain’t broke, don’t fix it” ….. buy BITCOIN ….. buy ETH ….. just do what Michael Saylor (CEO MicroStrategy) does ….. buy and HODL BITCOIN ….. uptrend established and in place ….. ETH says ‘Me Too’ ….. still NOT a GOLD fan ….. certainly NOT a buyer above $1,800. ….. hold if you must ….. S&P 500 ….. oh hell ….. i always thought markets couldn’t go up all the time ….. guess they can ….. ignore S&P 500 ….. buy BTC ….. better risk/reward

WATCHED SCENES OF PEOPLE FLEEING AFGHANISTAN….NO ONE CARRYING GOLD…..LOTS OF MOBILE PHONES WITH BITCOIN ON THEM…..THAT SAYS IT ALL.

Trading Thoughts:

  • BITCOIN still heading to $75,000…..then $95,000…..and beyond;
  • Near term “steps”…..next $52K…..then $65K/$75K and then$95;
  • New upside target for ETH…..$4,500-$5,000;
  • 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;
  • S&P 500 “dips” to 3,500-3,700;
  • 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
  • SHORT 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