The Taylor Report (8/30/22)

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Common Sense for Uncommon Markets

By Bill Taylor, Contributor/CIO-Entoro Investments


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


Bullish for week of 8/30/22

BTC | ETH

 


Neutral for week of 8/30/22

NONE

 

Bearish for week of 8/30/22
S&P 500 | GOLD

 

8/30/22 Closing Prices:

BITCOIN:  $20,010.40 (-$124.43)
ETH: $1,540.40 (+$7.51)
Gold:  $1,711 (-$14.00)
S&P 500:  3,986.16 (-44.45)

Trading Summary Notes for Tuesday, 8/30/22:

What’s new? 

Federal Reserve Chairman J. Powell pledged to beat inflation no matter what the pain at last week’s Jackson Hole, WY symposium. Meaning, interest rates are going higher. That’s the BIG news. The other news? Summer is just about over for 2022. Crypto and equity markets continue to go lower. Here in Montana we are losing 3 minutes of sunlight a day (until Dec.) Damn!

BITCOIN dropped 7% (Tue-Tue) to barely hold above $20K. Buyers are stepping back for awhile.

ETH lost 6% (wk-wk) holding around $1,500. The ETH “merge” is still on for Sept.

GOLD declined 1.2% (Tue-Tue) and continues going nowhere

S&P 500 lost 3.5% (wk-wk) continuing to give up gains from the earlier big rally.

BITCOIN IS SUPPOSED TO BE AN UNCORRELATED ASSET BUT SEEMS TO BE TRADING WITH THE NASDAQ INDEX.  OR, INVESTORS ARE JUST MOVING OUT OF EVERY ASSET SECTOR.

What to do now?

Buy BITCOIN dips. The risk-reward (long term) is excellent. $5k-$10K downside with potential upside of…………$50K? $100K? $X?

Buy ETH.  The march higher continues. The ETH ‘merge’ is on track and selling is “on hold” until the actual event. Long term bullish.

Avoid GOLD. Dead money. Sell or sell short. GOLD goes lower.

The S&P 500 will have bear market rallies/bounces but that’s all they are. Reduce long positions and sell short S&P 500 rallies. The worst is yet to come. This is NOT a new bull run.

INTEREST RATES ARE GOING TO SURPRISE MANY AT HOW HIGH THEY WILL GO. BE READY.

WHILE MOST INVESTORS ARE SEEING RAIN CLOUDS, I SEE A CATEGORY 5 HURRICANE BUILDING.  BE HEDGED, BE AWARE AND BE CAREFUL.

NEW TARGETS:

  • BITCOIN 2022…….$35,000-$40,000
  • ETH 2022…………$2,500-$2,700
  • GOLD……….$1,650-$1675
  • S&P 500 2022……..DOWN…….DOWN……DOWN……...LOOKING AT 3,250

Current trading positions: 

  • LONG BITCOIN
  • LONG ETH
  • SHORT GOLD
  • 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 CEO of Digital Wealth News and an advisor to Entoro Investments. He is widely published & quoted in financial media and an international expert on markets and BTC, ETH, Gold & SP500.

His opinions are solely his own and for informative purposes only.