Common Sense for Uncommon Markets
By Bill Taylor, Contributor/CIO-Entoro Investments
The opinions expressed below are my own & do not represent those of Entoro Investments, Digital Wealth News or any affiliates. Any financial advice included in the column is for entertainment purposes only.
Bullish for week of 4/4/23
BTC | ETH
Neutral for week of 4/4/23
GOLD
Bearish for week of 4/4/23
S&P 500
4/4/23 Closing Prices:
BITCOIN: $28,187.60 (+$59.36) | (+4.6% change Tue-Tue)
ETH: $1,869.37 (+$42.62) | (+7.2% change Tue-Tue)
Gold: $2,005 (+$36.00) | (+2.5% change Tue-Tue)
S&P 500: 4,100.61 (-23.90) | (+3.2% change Tue-Tue)
The second quarter of 2023 is now underway. It begins with a short week since Good Friday is a quasi-holiday. March employment numbers and fresh inflation (CPI, PPI) numbers are kicked over into next week. Which makes for a “subdued” trading week this week. So tear up your useless losing March Madness basketball brackets (congrats UConn) and watch the Trump arraignment media event.
Well, the first quarter in the financial markets dodged reality. Equities were up even with bank failures, tough Fed talk, only slightly muted inflation (come on, 6%+ inflation ain’t good) and fantasy talk about a new bull market. OK, fine. Gold rallied because of inflation staying high, bank failures (yes, cracks in the banking system are not good), slightly lower interest rates and geopolitical events. OK, fine there, too. Bitcoin and ether rallied strongly even as U.S. regulators tried to kill it by making banking harder to get for crypto firms. Yes, it is a flight to safety and NO, regulators can’t kill it.
Speaking of crypto (and I was), Elon Musk has re-branded Twitter as Dogecoin…..at least as far as changing the logo. Hmmmmm! He has a global satellite network (Starlink), a history and passion for payments and a disdain for central banking. What could Mr. Musk be up to?
So, bottom line, equities are living in fantasy land, gold is hoping the new BRICS’ currency will include the shiny metal and crypto is alive and well (but not so much for the global financial system). Second quarter should be…..interesting.
What now?
BITCOIN & ETH are proving regulators can’t actually crush crypto. While they try, the prices sort of stagnate (BTC around $28K, ETH around $1,800). Tough here. Should be a pullback and upside not ready. Buyer on weakness and looking for mid-year resumption of strong rally. Hang in there.
GOLD. I’m not a big GOLD fan but I have to admit, it is acting well. So much uncertainty around the globe favors the metal. If you are long, hold it. If you are a GOLD bull, I guess you buy it. I’m neutral and a better BITCOIN bull.
S&P 500. Don’t be surprised when reality hits. Bad news is bad news and you can’t spin bank failures (there will be more) and a recession into being good for equities. When the music stops, and it will, don’t be the one without a chair. Be short, get short and be ready.
INFLATION IS NOT DEAD. IT IS PAUSED AT AN ELEVATED LEVEL. THE EASTER BUNNY BRINGS COLORED EGGS AND CANDY, NOT INFLATION RELIEF.
SAUDI ARABIA AND OPEC ARE OUT TO HURT THE U.S. ECONOMICALLY. WAIT ‘TIL THEY TURN THEIR SIGHTS ON THE DOLLAR.
NEW TARGETS:
- BITCOIN 2023…….UP
- ETH 2023…………UP
- GOLD 2023……….??????????
- S&P 500 2023……..DOWN…….DOWN……DOWN……...LOOKING AT 3,250
Current trading positions:
- SLIGHTLY LONG BITCOIN
- SLIGHTLY 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 and an advisor to Entoro Investments. 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.
