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 DWN or any affiliates. Any financial advice included here is for entertainment purposes only.
Bullish for week of 8/6/24
Neutral for the week of 8/6/24
GOLD
Bearish for week of 8/6/24
S&P 500 [ BTC [ ETH
8/6/24 Closing Prices :
BTC: $56,678.66 | -13.8% | (Tue-Tue)
ETH: $2,500.86 | -23.6% | (Tue-Tue)
Gold: $2,362| -0.08% | (Tue-Tue)
S&P 500: 5,240.03 | -3.6% | (Tue-Tue)
Well the last week sure gets everyone off the beach and away from the pool. It’s what we used to call “a tone change.” The “tone” of the market has changed. Dramatically.
The biggest shocker? At least for me, it’s bitcoin and little sister ether. WTF. That’s a reversal big time and I have to move from really bullish to bearish for a while. The equity market (S&P 500) is definitely bearish. Gold neutral.
So what will the Fed do? Will the market’s decline make the Fed act? Or, since the market has picked up a bit today (Tue. 8/6), will they say “let’s wait”. I have never seen so many people/investors clamoring for a rate cut. Get a grip. Everyone is so used to Big Mommy Fed bailing out anything adverse. Cut 25 bips? No, make it 50 bips several times. Not enough. Do 75 bipss two or three times. BTW, if they do that, the economy is worthless.
While you are glued to the screen waiting for the Fed, watch THIS. Markets, LOWER highs and LOWER lows. It’s right in front of you. Oh, it means the markets are all going lower.
The balance of the year is going to get…….nasty. There is a Black Swan lurking and investors should be ready for disappointing market action. In other words, this party is over. Way too many bulls out there. Don’t let the “happy bullish talk” get you. LOWER HIGHS and LOWER LOWS. Simple.
Now what?
GOLD. Maybe that’s the hiding place for now. It’s eased off a bit this last week, or unchanged at best (Tue-Tue). Not comfy waking up to see the metal down $75 one morning. Gonna stay neutral.
BITCOIN. It was really struggling at $70K and then at $66K-$69K. Before I could change thinking, it was $50K. I am worried there are too many bulls (me, too) looking only UP. What happens if MicroStrategy (Michael Saylor) gets a margin call? Price action says lower.
ETH. It will follow BTC. Looking to break $2K.
S&P 500. OMG. Down down down. Sure, sharp rallies will happen, but the index is in a downtrend. Get short or get out. Down on the year is a distinct possibility.
REALITY IS HARD TO TAKE. MOUNTAINS OF DEBT, COST OF LIVING, EXTREME BULLISHNESS. NOT A GOOD COMBINATION. S&P 500 DOWN ON THE YEAR.
QUESTION; OVER 10 MILLION MIGRANTS HAVE COME TO THE US. WHAT HAPPENS IN A STEEP RECESSION WHEN THEY HAVE NO JOBS? CHECK WITH BRITAIN. UH OH!!
2024 TARGETS:
- BITCOIN 2024……..????????
- ETH 2024…………???????????????
- GOLD 2024……….??????????
- S&P 500 2024……..??????????
Current trading positions:
- SHORT BITCOIN
- SHORT 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.
