The Taylor Report (10/25/22)

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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 10/25/22

BTC | ETH

 


Neutral for week of 10/25/22

NONE

 

Bearish for week of 10/25/22
S&P 500 | GOLD

 

10/25/22 Closing Prices:

BITCOIN:  $19,493.14 (+$119.64)      (0% change Tue-Tue)
ETH: $1,381.69 (+$34.77)                    (+5% change Tue-Tue)
Gold:  $1,641 (+$3.00)                         (0% change Tue-Tue)
S&P 500:  3,859.11 (+61.77)              (+3.7% change Tue-Tue)


So, what’s happening? The 4th quarter is off to a good start and Halloween is only a few days away. Looks like the bear market in Bitcoin, ETH, Equities and Gold(?) have decided to go out trick-or-treating as a bull. You can dress up a bear as a bull, but everyone knows it’s really a bear….right? Oh, except for gold. Can’t dress gold up as a bull. Won’t work.

Even a solid ‘bear’ like me does respect a bullish bounce and especially when it happens before elections. No matter what political party you favor, over history the incumbent party will do all they can to make sure financial markets hold up, or go up, before voters vote. Keep that in mind.

The Fed may pause raising interest rates (or get ‘cold feet’) for a bit, but rates will still go higher. Inflation is NOT “fixed” and the recession has NOT even started yet. Expect year end selling, NOT a continued rally.

PREPARE:  BITCOIN and ETH have bottomed.   GOLD has more downside (sorry gold bugs….it’s over).  The S&P 500 (equities) are going to have another huge leg down. The crypto sector has all (or most) of the bad news behind it.  Equities have not seen the bad news….YET.  GOLD will suffer as interest rates stay high.

I’m a buyer (and have been) of BITCOIN, bullish on ETH, super bearish on GOLD and super duper bearish on the S&P 500 (equities).  Have a great Halloween! BOO!

NEW TARGETS:

  • BITCOIN 2022…….$35,000-$40,000
  • ETH 2022…………$2,000-$2,500
  • GOLD……….$1,500-$1,525   (NEW TARGET)
  • 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.