The Taylor Market Report (5/28/24)

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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 5/28/24
BTC       


Neutral for the week of 5/28/24
GOLD | S&P 500 | ETH


Bearish for week of 5/28/24
N/A

5/28/24 Closing Prices :

BTC: $68,197.31 | -2% | (Tue-Tue)
ETH: $3,817.26  | +2% | (Tue-Tue)
Gold: $2,334 | -2.7% | (Tue-Tue)
S&P 500: 5,306.04 | -0.03% | (Tue-Tue)


Well, wadda ya gonna do? May is just about over and summer is fast becoming a real alternative to trading/investing. Graduates have graduated, schools are out and if anyone out there in financial market land doesn’t hit the vacation trail, they must know something nobody else knows. The summer doldrums are in full doldrum.

So, before you hit the beach, pool, a national park, mountains or just your backyard, realize there probably won’t be much going on. Oh sure, later this week the PCE (Personal Consumption Expenditures) comes out, but so what? The PCE is the Fed’s favorite index to gauge inflation (or cost of living) which may influence the Fed’s interest rate decisions. Ha!! The Fed is NOT doing anything so don’t get excited. Vacation well, my friends.

Last week had a three day weekend (Memorial Day) and shortened trading activity. Gold dipped and then un-dipped but eased lower (Tue-Tue). The S&P 500 wandered around going nowhere. Bitcoin drifted a bit lower and ETH drifted a bit higher. (the SEC has allowed spot ether ETF’s giving ETH a boost) Pretty dull WITH ONE exception; AI (artificial intelligence). The DWN AI Index rocketed to all time highs with lots of help from NVIDIA. Yawn!

Now, there must be something to do, right? Other than get a good chaise by the pool. Well, here are some thoughts.

Realizing that it will be a long summer, my best advice is to get, or remain, mostly neutral.

GOLD. Neutral. it may pop up, but as we have seen, it can drop suddenly…..and hard. Looks like it will go nowhere for a while. I like the neutral idea.

S&P 500. I have no idea where that index is going near term. I want to be bearish, but it doesn’t go down. I could be bullish but it looks tired. So, neutral it is. Plenty of time to observe.

Ether. ETH has had a nice move up anticipating a spot ETF. It got it. Spot ether ETF’s are coming. I am long term bullish but a lot has been priced in. Again, neutral.

AH, BITCOIN. Here is the ONE I want to be long. I truly believe its going to nudge $100K. Go long, HOLD and get ready.  Anyway, whether you are at the pool, or the beach or anywhere, you need to check and cheer for something.  BULLISH.

INTEREST RATES ARE NOT GOING DOWN. IF RATES SITTING WHERE THEY ARE CAN’T GET INFLATION UNDER 3%, WHAT WILL IT TAKE TO GET INFLATION DOWN TO THE FED’S TARGET OF 2%??  ANSWER? HIGHER RATES.

A REAL ‘WILD CARD.’  SCARY.  THE U.S. ELECTION WILL BE POSTPONED.  ON THE THREAT OF ELECTION VIOLENCE, THE WH DECLARES MARTIAL LAW AND POSTPONES THE ELECTION.  I KNOW, FAR FETCHED, BUT……???


2024 TARGETS:

  • BITCOIN 2024……..$95K
  • ETH 2024…………???????????????
  • GOLD 2024……….??????????
  • S&P 500 2024……..?????????? 

Current trading positions: 

  •  LONG BITCOIN
  •  NEUTRAL ETH
  • NEUTRAL GOLD
  • NEUTRAL 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.