Mid Month Update

by JDH on May 15, 2021

It is May 15, 2021, so here’s what’s happening:

The world has not ended.  The stock market is holding in there.

Gold

After a double bottom in March and April at around $1,675, gold has bounced back to $1,838, but the one-year chart continues to show a clear downtrend, and with the RSI approaching 70 it is likely that we are approaching a local top for gold.

Perhaps not.

If gold can get above the prior top at the beginning of January of around $1,950, further increases are possible, but for now, I’m thinking the short-term trend is more likely to be down than up.

I am not doing any new buying.

Crypto

This brings us to the much more interesting world of crypto.

As I write this shortly after 7:00 am on Saturday morning, Bitcoin is around $48,600, which is near the bottom of its trading range since the first week of March ($47,000 to $65,000, it’s a big range).  I don’t think Bitcoin is dead.  Far from it.  A more likely scenario is that the whales are using this as an accumulation opportunity, and I continue to expect to see Bitcoin at $100,000 by the end of the year.

Ether is rocking, up 450% on the year, and easily my best investment year to date, through QETH – The Ether Fund, so I’m happy about that.  I’m not crazy, however, so I did take some profits this week, and will likely continue to sell on further strength.  Ether peaked just under $4,400 a few days ago, and currently sits at $3,888.  I expect $10,000 Ethereum, likely before the end of the summer, but we shall see.

I’m not going to comment on Doge, because it’s a joke.  Literally.  Yes, it’s up 12,000% on the year, but I don’t own any, and I’m not buying any.

Of more interest is Cardano, and its native token ADA, which is up a modest 1,200% year to date.  I will leave it to you to do your own research.  This one is real.  However, generally, after a big move is not the time to buy, so I’m not saying to buy now, just to keep an eye on it.

Interesting times.

Perhaps next week we get a massive crash.  That will make for an interesting discussion, so tune in next week and let’s see what’s happened.  For now, ride the wave.

See you next week.