The Taylor Report (9/6/22)

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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 9/6/22

BTC | ETH

 


Neutral for week of 9/6/22

NONE

 

Bearish for week of 9/6/22
S&P 500 | GOLD

 

9/6/22 Closing Prices:

BITCOIN:  $19,769.26 (+$29.50)
ETH: $1,651.90 (+$64.74)
Gold:  $1,687 (-$10.00)
S&P 500:  3,908.19 (-16.07)

Trading Summary Notes for Tuesday, 9/6/22:

What’s new? 

Here in the U.S. the long Labor Day weekend is over, summer is over, kids are back in school and after this short four day week, “normal” should return. Other than that, not much is really new.

BITCOIN dropped another 1% (Tue-Tue) to close below $20K.

ETH gained 7% (wk-wk) in advance of the “merge”. The ETH “merge” is still on for Sept.

GOLD declined 1.4% (Tue-Tue) and continues going nowhere…….except down.

S&P 500 lost 2% (wk-wk) continuing to give up any gains of the past few months..

LET’S BE REALLY CLEAR (SPOILER ALERT).  THE EQUITY MARKETS ARE IN A BEAR MARKET.  INFLATION IS EASING  (FOR NOW)  WITH RECESSION LOOMING.  INTEREST RATES ARE GOING MUCH HIGHER.    

What to do now?

NOT CHANGING ANYTHING BELOW FROM LAST WEEK. I COULDN’T HAVE SAID IT BETTER MYSELF.  OH WAIT, I DID.

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.

POSSIBLE EXPLANATION?  PRESSURE ON BITCOIN MAY BE BECAUSE INVESTORS HAVE BEEN BUYING ETH AHEAD OF THIS MONTH’S MERGE AND SELLING BITCOIN SHORT?  IF SO, IT’ BEEN A GREAT TRADE.  WILL THAT REVERSE AFTER THE MERGE?  JUST THINKING.

EQUITY AND GOLD HOLDERS BEWARE.  ITS GOING TO GET UGLY (or uglier)

NEW TARGETS:

  • BITCOIN 2022…….$35,000-$40,000
  • ETH 2022…………$2,000-$2,500
  • GOLD……….$1,250-$1650
  • 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.