Common Sense for Uncommon Markets
By Bill Taylor, Contributor/CIO-Entoro Investments
DISCLAIMER: 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 2/13/24
BTC | ETH
Neutral for week of 2/13/24
GOLD
Bearish for week of 2/13/24
S&P 500
2/13/24 Closing Prices :
BTC: $49,292.99 | +14.2% | (Tue-Tue)
ETH: $2,622.72 | +10% | (Tue-Tue)
Gold: $1,973 | -2.1% | (Tue-Tue)
S&P 500: 4,953.17 | 0% | (Tue-Tue)
First, HAPPY VALENTINES DAY. Not that you are my valentine or anything, but still………don’t forget the special day for your significant other.
So the Fed has said don’t count your interest cuts as a done deal just yet. Nope, they are staying pat. Also, the CPI (consumer price index) released this morning showed inflation coming in a touch higher than expectations. But, if you don’t need to eat or live in a home, inflation is certainly lower………for now. In other words, it warrants some re-evaluation of investing decisions.
A couple very big things have just happened. The S&P 500 hit 5,000. An all time record high (go figure). AND, after the SEC’s approval of several spot bitcoin ETFS (and brief ‘flush out’) the digital asset just hit $50K. Oooooo! Idea. Long BTC, short S&P? Oh wait, I have had that working for several years.
So, the Fed may NOT cut interest rates for a while, inflation isn’t gone, the S&P hit new highs and bitcoin is starting a new march higher. Whew. Nice week.
Now what?
Let’s start with GOLD. Once again….WHY? It’s dead money. Higher interest rates hurt GOLD. Slower economic growth hurts GOLD. It would appear that the shiny metal is caught between $1,800 and (maybe) $2,200. Inflation buyers at the lower end, interest rate sellers at the upper end. So WHY? Neutral hold at best.
BITCOIN and ETH. No brainer here. Huge demand, limited supply (yeah, true) and the possibility of an ETH ETF. BITCOIN new all time high is certainly in the cards. Probably sooner rather than later. Best new asset class EVER. Buy on dips.
The S&P 500 has seen the top. I mean come on, those nice returns over the past few years are now in the rear view mirror. The S&P 500 at 5,000? If you didn’t hear the bell ring…..you’re deaf. Short and expect a bigger drop than you may imagine.
SO YOU HAVE BEEN AT THE PARTY OF THE CENTURY ALL NIGHT. THE NOISE GOT SO LOUD THE COPS WERE CALLED. NOW YOU LOOK AROUND AND NOTICE ALL YOUR FRIENDS HAVE LEFT. THERE YOU ARE, SITTING ALL ALONE, DRUGS AND BOOZE ALL AROUND YOU, AND THE COPS JUST ARRIVED. KIND OF LIKE BEING LONG THE S&P AT 5,000.
2024 TARGETS:
- BITCOIN 2024…….UP……New highs above $70K
- ETH 2024…………UP……..New highs above $3K
- GOLD 2024……….$1,800-$2,200
- S&P 500 2024……..3,700-3,900 (down 20%)
Current trading positions:
- LONG BITCOIN
- 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.
