The Taylor Market Report (7/9/24)

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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 7/9/24
      

Neutral for the week of 7/9/24
GOLD | S&P 500 | ETH  [ BTC

Bearish for week of 7/9/24
N/A

7/9/24 Closing Prices :

BTC: $57,780.40 | -6.8% | (Tue-Tue)
ETH: $3,061.86 | -10.4% | (Tue-Tue)
Gold: $2,338| +1.4% | (Tue-Tue)
S&P 500: 5,576.98 | +1.2% | (Tue-Tue)


Summertime and the trading is easy. Buy stocks, sleep and wake up richer. Rinse and repeat everyday and grow richer everyday. What could possibly go wrong? Well, so far, nothing.

Yes, I know, when markets act like this and only go up, nobody likes to be warned about possible “problems.” Until something goes wrong and markets go down (gasp, is that possible?) and then all you hear is “why didn’t you warn me?” or “who could know?”

Like my tag line above; Common sense for uncommon markets. Use that common sense. Enough said.

Consumer price index (CPI) comes Thursday and producer price index (PPI) Friday. Just like the employment numbers of last week, it probably won’t be a big deal.

On to bitcoin. Selling pressure from the return of bitcoin to former customers and creditors of Mt Gox. Reportedly up to $9B of bitcoin may be liquidated. Remembering back 10 years ago, Japanese exchange Mt. Gox was hacked and all but around 15% of the bitcoin held was lost. Well, those customers and creditors just received their “remnants” (which is worth over 50 times more than 10 years ago) and are likely to sell. Maybe not all, but it’s a big overhang. When that long standing overhang is absorbed……..uh, its good.

Ether sank along with bitcoin for no other reason other than it goes with bitcoin. No matter what, both had a really bad week.

So, what now?  One big word; NEUTRAL.  Its summer and not a time to make major (or semi-minor) financial moves. Relax for a few months.

GOLD. It keeps trying to get follow on momentum and surge higher…..but all of a sudden it drops $30-$40. I hate that. Neutral.

S&P 500. Or the S&P 7. Fewer stocks making the biggest noise and distorting the “picture.” Can’t be short and don’t need the aggravation of being long. Neutral.

BITCOIN. When the sellers go away, the bulls will play. THIS is the dip. The selling will be absorbed clearing the way to new highs. Sort of neutral but nibbling down here ($55k-$58K). Stay tuned.

ETH. Follows BTC. Neutral. Rather be in BTC.

FLASHBACK;  1987. THE STOCK MARKET DID ALMOST EXACTLY WHAT IS GOING ON NOW. EVERYDAY ALL THROUGH THE SUMMER THE MARKET EDGED HIGHER AND HIGHER. NO REASON, IT JUST DID. THEN, IN OCTOBER, WHAM, 25%-30% DOWNSIDE. PANIC. JUST SAYING, AND IF YOU THINK IT’S “DIFFERENT THIS TIME,” LET ME SELL YOU A NICE SHINY GOLDEN BRIDGE OUT WEST.


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.