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 7/16/24
BTC [ ETH [ GOLD
Neutral for the week of 7/16/24
S&P 500
Bearish for week of 7/16/24
N/A
7/16/24 Closing Prices :
BTC: $64,940.02 | +12.4% | (Tue-Tue)
ETH: $3,468.20 | +13.3% | (Tue-Tue)
Gold: $2,443| +4.5% | (Tue-Tue)
S&P 500: 5,667.20 | +1.6% | (Tue-Tue)
WHO KNEW POLITICAL ASSASSINATION ATTEMPTS WERE BULLISH? Certainly not me.
Potential interest rates cuts, a softening labor market, geopolitical events and earnings mean nothing. A crazy guy with a gun and markets go crazy. Now I’m feeling older.
Speaking of interest rate cuts (and I was), Fed Chair J. Powell has hinted that possibly, maybe, could be, there might be (tease tease) a chance the Fed may ease. Or, as my article this week in DWN reads, punt. Should the Fed cave in and decide to cut rates with inflation running at 3% (is 3% the new 2%?) it would make sense gold, housing, bitcoin, oil etc. would explode higher. That would be a disaster and even crazy but hey, so is a shooter at a political rally.
Right now markets in general are in a “melt up” and in their own zone. Fun to watch but dangerous nonetheless. Equities (S&P 500) are in a frenzy. Buyers don’t care about anything except buying. The thinking being that should Trump win in November there will be a loosening of regulations and lower taxes. Maybe, but not worth buying stocks at ever higher prices.
I have been neutral (sometimes outright bearish) on gold expecting interest rates and inflation to remain elevated. Should the Fed choose to ease off on interest rates with 3% inflation, gold could explode. And should. Sad for consumers, glad for gold investors.
The huge ($3B-$9B) selling overhang in bitcoin looks to be over. The German government sold around $3B beginning the first of this month and they are done. The rest of that overhang has been reduced or is happy staying long. In the meantime, Trump is very pro-bitcoin and crypto.
So quickly…
GOLD may see $4,500-$5000 should the Fed succumb to pressure to lower rates. I’ve gone slightly bullish with that premise.
BITCOIN. Like I said last week, the $55K-$58K looked like the end of selling and do some ‘nibbling.’ Should have been ‘gobbling’ but there is a lot of room to go. Sellers out of the way and a good risk reward evolve; A $7K-$8K downside and a huge upside potential. Bullish. $95K?
ETH. Following BTC. $5K. Bullish
S&P 500. The equity market is in the throes of a severe melt-up. It goes where it goes until the music stops. I see it, I have SEEN it before and it will end. A great party and the drinks flow until the police show up. It will not end well (la la la la ….I can’t hear you). Neural and watching.
JOHNNY CASH: “DON’T TAKE YOUR GUNS TO TOWN”
OR POLITICAL RALLIES.
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.
