Common Sense for Uncommon Markets
By Bill Taylor, Contributor/CIO-Entoro Investments
The opinions expressed below are my own & do not represent those of Entoro Investments, Digital Wealth News or any affiliates. Any financial advice included in the column is for entertainment purposes only.
Bullish for week of 5/2/23
BTC | ETH
Neutral for week of 5/2/23
GOLD
Bearish for week of 5/2/23
S&P 500
5/2/23 Closing Prices:
BITCOIN: $28,298.69 (+$330.61) | (+3.7% change Tue-Tue)
ETH: $1,845.71 (+$27.49) | (+1.7% change Tue-Tue)
Gold: $2,000 (+$36.00) | (+1% change Tue-Tue)
S&P 500: 4,119.58 (-48.29) | (+1.2% change Tue-Tue)
Another week, another bank collapse. First Republic has now become the second largest bank failure following Silicon Valley Bank. Note of warning, there are a lot of weeks to go and a lot more banks out there. Just saying.
So it’s official. May is under way. Still time to “sell in May and go away.” But if you’re still around, there’s a lot to look forward (?) to. The Fed finishes its meeting tomorrow with probably a 25bps rate hike. Then what? Do they stay put and wait to see if their genius worked, or do they continue raising? Inflation numbers will be coming as well as employment numbers. For sure they are NOT considering easing rates. If I had perfect vision and advance knowledge I would share with you, I would, but I don’t. Just expect some wild volatility. Its gonna get “fun.”
Bitcoin, ethereum, gold and the S&P 500 all ticked up for the week (Tue-Tue). Slightly up, but up, nevertheless. Bigger gains were had, but some strong selling took the money away. Oh well. Certainly considering the reality that the U.S. is bankrupt and dancing on fragile ground, any upside is good, right(??).
So what to do if the U.S. defaults (or not),and the debt ceiling is raised (or not)? Hmmmm!
Buy BITCOIN and/or ETH. The crypto winter is over and a new bull market has set in. Lets say BTC at $50K and ETH at $2,700 (above GOLD again). The dollar is “toast” and the U.S. has problems that are not going away.
Hold (or buy) GOLD. The best you can hope for is that the metal just holds value and the Fed pauses on rate increase. Yawn. Maybe seeing $2,200-$2,300.
Once again, sell/sell short the S&P500. Looking at a 20% downside IMO, and it will come fast. Investors will realize the news and future news is……BAD. Sticking to 3250 for the S&P 500.
NEXT “SHOE” TO DROP? REAL ESTATE. COMMERCIAL AND RESIDENTIAL. LOTS OF PAIN COMING.
THE “MOOD” HAS CHANGED. REALITY HAS A WAY OF DOING THAT. WATCH OUT INVESTORS/TRADERS IN EQUITIES.
NEW TARGETS:
- BITCOIN 2023…….UP
- ETH 2023…………UP
- GOLD 2023……….??????????
- S&P 500 2023……..DOWN…….DOWN……DOWN……...LOOKING AT 3,250
Current trading positions:
- SLIGHTLY LONG BITCOIN
- SLIGHTLY LONG ETH
- NEUTRAL 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.
