The Taylor Market Report (3/12/24)

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Common Sense for Uncommon Markets

By Bill Taylor, CEO / Digital Wealth News and AI & Finance


DISCLAIMER: The opinions expressed below are my own & do not represent those of Digital Wealth News or any affiliates.  Any financial advice included in the column is for entertainment purposes only.

Bullish for week of 3/12/24
BTC | ETH

Neutral for week of 3/12/24
GOLD I S&P 500

Bearish for week of 3/12/24
 

3/12/24 Closing Prices :

BTC: $71,516.37 | +14.5% | (Tue-Tue)
ETH: $3,977.69  | +16.5% | (Tue-Tue)
Gold: $2,136 | +1.3% | (Tue-Tue)
S&P 500: 5,175.27 | +1.9% | (Tue-Tue)


Well here we are sneaking up on the middle of March. CPI was just in this morning and (ta da) inflation is just not going away. Looks like the current interest rates will keep inflation stubbornly high and in check. A raise in rates MAY get inflation a bit lower, but stall the economy. An interest rate cut (why??) MAY cause a spike up in inflation. For certain, forget 6 cuts this year.

The end of the first quarter of 2024 is only weeks away which, in turn, means the beginning of the second quarter is only weeks away as well. But the really BIG event gets going next week. March Madness basketball tournament brackets will be out and when you fill them out, remember you have no chance in hell of having a perfect bracket. Good luck anyway.

So bitcoin and ether hit new all time highs this past week. Even gold perked up, probably embarrassed that both BTC and ETH outperformed the shiny metal…..again. The S&P 500 keeps hitting new highs…..no matter what. Rather incredible and rather confusing as well. And another big winner? The DWN/AI index. New highs for the artificial intelligence sector there as well.

So what to make of all this and, better yet, what to do now? Well, first get your green ready for St. Pats Day and then…

Buy any dips in BITCOIN and/or ETHER. As the two of them move higher, the dips will become shallower and quicker. The supply of BITCOIN is shrinking and the demand is still not satisfied. Remember, most of the buying is expected to hold for quite some time, not sell. Example, lets say 70% of all new purchases are expected to hold long term and 30% may trade or sell, the supply just keeps dwindling. Looking at $95K for BITCOIN before breaking above $100K. ETHER $5K.

GOLD. The shiny metal has had a great leap up and hit new highs. I have GOLD in a wide band trading range ($1,800-$2,200) and it is backing off the top now. For sure, GOLD will never get back above BTC or ETH but perhaps (PERHAPS) owning both GOLD and BITCOIN/ETHER (higher GOLD percentage) could dampen the overall volatility of that mix. I’m more in love with BTC and ETHER than GOLD.

The S&P 500. I’ll be straight. I don’t get it. It’s like a zombie……..it can’t be killed. Fewer stocks keep the index up, interest rates tick up, interest rates tick down……the index doesn’t care. Gravity? Reality? Manipulated economic numbers? Wars? Election? No matter. I’ll just keep adding BITCOIN and take a nap. S&P 500?  I’m going neutral……which is probably the top.


SPOILER ALERT;  VERY SAD TO REPORT THAT THE “NEVER BITCOINERS” HAVE BEEN WRONG……AGAIN. THEIR HOPES FOR BITCOIN GOING TO ZERO ARE DIMINISHING.

MICHAEL SAYLOR (CHAIRMAN OF MICROSTRATEGY) JUST BOUGHT ANOTHER $800M OF BITCOIN. HE’S THE MAN.


2024 TARGETS:

  • BITCOIN 2024…….UP……New highs above $70K  (winner……..now $95,000)
  • ETH 2024…………UP……..New highs above $3K  (winner….now $4,800)
  • GOLD 2024……….$1,800-$2,200
  • S&P 500 2024……..?????????? 

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. 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.