The Taylor Market Report (4/9/24)

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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 4/9/24
BTC | ETH  
    


Neutral for the week of 4/9/24
GOLD


Bearish for week of 4/9/24
S&P 500

4/9/24 Closing Prices :

BTC: $68,876.78 | +4.3% | (Tue-Tue)
ETH: $3,507.87  | +7% | (Tue-Tue)
Gold: $2,328 | +3.2% | (Tue-Tue)
S&P 500: 5,209.91 | -0-% | (Tue-Tue)


The solar eclipse is over and it looks like everyone survived. Whew! The sun is out again. Now what’s really frightening, it’s almost tax day (April 15th) and the government needs your money. Pretty sure it will be put to good use.

So what’s coming up? Tomorrow brings the CPI (consumer price index) and Thursday comes the PPI (producer price index). These numbers will NOT dictate what the Fed will do regarding interest rates. Nope. Gonna wait for more data, which means the Fed can put off any decisions.

Think about it. If inflation is easing (if you don’t eat, drive a car, live in a tent or have a life) the Fed still has a problem. If they cut rates they will be accused of being political to help the current WH. If they were to raise rates they would most likely trigger a huge market sell off. So, when in doubt, sit it out. No action on rates.

Where are we heading? Is everything on hold till after the election (if there is one)? I mean so far the financial markets have been rather subdued considering all that’s going on. Will it last?

GOLD looks to be the winner of the week and even the past month. New record highs. Not being an “all in” GOLD guy I am a strong believer that higher rates will undo the GOLD rally. But it may be from a slightly higher level. Perhaps the shiny metal is getting traction from Chinese buyers since they can’t easily buy BITCOIN(??) Or some huge negative development is lurking.

BITCOIN and ETHER are consolidating after a nice rally to all time highs. April is halving month for BITCOIN and the reduced supply will be an ongoing bullish factor. More buyers holding and less supply is extremely bullish Long term bullish. Use dips to buy/add.

ETH is on a waiting timeline for an ETH ETF. Until then it will trade along with BITCOIN. That ain’t so bad. Long term bullish.

The S&P 500 is in a world of its own. Seems there is no way it can go down………..until. I truly believe its peaking and the rush to sell will get ugly. Be short (at least a bit) because the selling will come suddenly

For the past week, GOLD was up as was BITCOIN and ETH. The S&P 500 was basically unchanged to slightly higher.


REMEMBER, INFLATION IS NOT THE SAME AS THE COST OF LIVING. THE COST OF LIVING IS UP OVER 30% SINCE 2020 AND THE FACT THAT IT IS ONLY INCREASING BY 3% NOW RATHER THAN 8% (INFLATION) IS NOT A GOOD THING.  ONE PERSON’S DINNER AT THE FOUR SEASONS IN NY IS NOT THE SAME AS SOMEONES DINNER IN ROSWELL, NM AT CHILI’S.  THE ECONOMY IS NOT AS ROSY AS THE FOUR SEASONS CLIENTELE THINK.


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……….$2,200-$4,800
  • 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.