Don here…

Walmart trades at a 45 PE ratio. Its earnings grow at 2.5% a year. Its net margin is 3.26%. Brandon Chapman pulled up the numbers this morning and called it the new AI stock. He was not being kind.

Price to book is 10.82 against a historical median of 4.82. Price to sales tells the same story. By almost every measure, Walmart is 75% overvalued.

Today, it started cracking.

In today’s free session replay, you’ll discover:

• Why the defensive rotation trade is running out of room. Traders piled into staples and utilities as a safety play. Brandon showed that Walmart’s valuation has no historical precedent. Investors sold it today and rotated into financials and industrials.
• The volatility trap that’s punishing every directional trader. The S&P is stuck in a 3% range while the VIX prices in a 5-10% correction. Options cost more, but the market moves less. Brandon compared it to pre-Lehman 2008, when the VIX seemed high but was actually low relative to what came next.
• Why junk bonds are diverging from the rest of the credit market.Treasuries rallied. Investment grade rallied. High yield did not. Brandon flagged widening risk spreads in HYG as a warning that credit stress is building beneath the surface.
• The invisible wall of institutional put buying building in the market.Someone bought $2.8 million in Google puts. Another institution loaded 20,000 contracts on VFC. QQQ saw 19,000 put contracts in a single trade. Brandon tracked it all through the Ghost Prints console and explained why it creates downside gravity once the range breaks.

The market looks calm on the surface. A 3% range does not feel dangerous. But the options market is telling a different story. Institutions are positioning for downside and the accumulated gamma is sitting there like a loaded spring.

Brandon has been watching this pattern build for weeks. Eventually the range breaks. When it does, the selling pressure from all that put activity compounds on itself.

→ Watch Brandon explain why the market’s calm surface hides a dangerous gamma buildup and how overvalued defensive stocks are about to crack

To your success, 

Don Kaufman
Chief Market Strategist, TheoTRADE

PS: Brandon tracked $2.8 million in Google puts. 20,000 contracts on VFC. 19,000 put contracts on QQQ in a single trade. That is not noise. That is institutional positioning you cannot see on a chart. The Ghost Prints console catches this order flow before it shows up in price. When the range finally breaks, all that gamma unwinds at once.

👉 Join Brandon tomorrow at 2PM EST and see what he is tracking live. SAVE YOUR SPOT

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