Hartnett: Going Long The BIG Trade

It may sound impressive that the S&P is already up 4.1% in 2025 - which, if annualized, would see the market return a stunning 50% this year - but that's only until you consider that gold is up more than double that, or a 8.5% YTD, indicating that virtually all of the gains are due to the public's perceived loss of faith in the reserve currency. And indeed, one look at the sheer insanity taking place in the commercial gold vaults in Manhattan some 100 feet below sea level, reveals that something very serious is afoot when it comes to gold (see "Something Extraordinary Is Taking Place In The Gold Vaults Below Manhattan") as another 735,000 ounces of gold are delivered to various comex vaults on Thursday in what can only be described as a run on physical, one which has pushed total vault gold just shy of the all-time covid highs.

But this isn't an article on gold (although one will follow). Instead, we point out that gold is soaring even as nominal (and real) yields as well as the dollar continue to rise and are at what Michael Hartnett calls, in his latest Flow Show report (available to pro subscribers), multi-year "twin peaks"...