The Taylor Report (9/7/21)

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Simple Thoughts in Complex Markets

By Bill Taylor, Contributor/CIO-Entoro Investments


The opinions expressed below are my own & do not necessarily represent those of Entoro Wealth or any of its affiliates


Bullish for week of 9/7

ETH BTC


Neutral for week of 9/7

NONE

Bearish for week of 9/7

S&P 500 GOLD

9/7/21 Closing Prices:

Bitcoin:  $49,898.89 (-$1,729.97)
Ether: $3,660.37 (-$273.17)
Gold:  $1,784 (-$35.00)
S&P 500:  4,520.03 (-15.40)

Trading Summary Notes for Tuesday, 9/7/21:

What’s new?

Today…..Sept. 7th…..marks a historic milestone. Latin American country El Salvador has made BITCOIN legal tender…..its really BIG…..Delta variant of COVID taking its toll on economic growth…..BITCOIN trades up to $52K anticipating El Salvador’s announcement…..drops back on profit taking…..ETH get to $4K and drops down with BITCOIN…..GOLD can’t hold $1,800 and takes big downside hit…..S&P 500 struggling with all the new highs…..going in to historically treacherous time (Sept. and Oct.)….. interest rates ticking back up too.

SAW A COMMENT THE FED MAY…….MAY…….RAISE THEIR INFLATION GOAL TO 3%. GUESS THEY REALIZE GETTING BACK DOWN TO 2% WON’T HAPPEN. WHAT’S NEXT…..4%…5%???

What to do now?

Use this dip to buy BITCOIN and ETH…..buy, buy buy…..opportunities like this don’t come often…..upside momentum will return quickly…..Hold or ignore GOLD……it just doesn’t react to events that should make it go up (inflation, geopolitical, etc.)…..Keep or get short S&P 500…..looking for initial 10% selloff…..before a deeper selloff.

ONLY 21M BITCOINS CAN EVER BE MINED……….BUT 3.7M MAY BE LOST OR UNRECOVERABLE………MEANS LESS SUPPLY

Trading Thoughts:

  • BITCOIN still heading to $95K at year end;
  • Buy the dip….HODL on;
  • ETH touched my target of $4K…….buy the dip;
  • New upside target for ETH…..$4,500-$5,000;
  • GOLD will continue to struggle to compete with BITCOIN and fight off potential 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 Investments & is widely published in financial industry media throughout the world