Brandon just exposed a number most traders refuse to look at.
The S&P 500 in gold terms is now trading at April lows.
Gold surged 2.2% today. The S&P gained just 0.6%. That means in real purchasing power, the market lost ground.
Brandon ran the ratio. At the start of the year, the S&P traded at 2.4 times gold. Today it sits at 1.67. Every sector is underwater when you account for dollar weakness.
Even Nvidia cannot outperform gold this year. The ratio dropped from 0.55 to 0.44. The Mag Seven as a group is down against the yellow metal. This marks the 11th consecutive year gold has outperformed the S&P heading into January.
The Bank of Japan just signaled they’re ready to intervene in currency markets. To buy yen, they need dollars. That means selling treasuries. The 20-year plus bond ETF dropped a quarter percent today. Gold caught the bid immediately.
Brandon’s warning is straightforward. If the dollar strengthens during a recession, the S&P would need to fall toward 4800 to match its current gold-adjusted value. The entire rally has been a currency illusion.
While the broad market struggles, Brandon spotted aggressive call buying in quantum computing and aerospace stocks following Trump’s space dominance announcement:
- RGTI saw a 4,000-contract block trade at the $38 strike for January 2nd expiration
- QBTS, IONQ, and ASTS are all attracting heavy call flow with high squeeze bar readings
- Hertz jumped 11% with call activity stacked at the $7.50 and $9 strikes dating back to December 4th
- Gold options exploded with over 113,000 contracts bought, including call spreads at the $415/$420 and $425/$440 strikes
Brandon says RGTI could squeeze toward $40 to $45 if it breaks through $30. These high-short-interest names thrive in holiday trading when sellers disappear and gamma forces take over.
