Michael Burry of 'Big Short' fame has closed bets against S&P 500, Nasdaq

We'll get to the headlines in a minute, but first; to update you on the market action. 

Yesterday's lackadaisical market action came to an abrupt end, no sooner than yesterday's CPI number was released, and just as expected, that's what was used as an excuse to continue squeezing the short sellers. See how the market action of the past 2 weeks, perfectly ties in with today's headline? 

Wall Street bulls always want to, "get the short seller" (make him capitulate), and they know how to do it! 

Case in Point: 

Investor Michael Burry of 'Big Short' fame has closed bets against S&P 500, Nasdaq yahoo.com/ thestreet.com

That's the face of a loser!

I remembered mocking this hedge fund manager back in August:

'The Big Short' Michael Burry makes his biggest mistake everhttps://t.co/NTT4uHAznc

— Veteran Market Timer (@3Xtraders) August 15, 2023

Apparently he hasn't learned his lesson, that loose lips sink ships, because now, this genius has decided to announce that he's betting against, the chips (semi-conductors) sector. 

Why ‘Big Short’ Investor Michael Burry Is Betting Against Chips, Including Nvidia barrons.com

Bloomberg asks, Are Markets Acting Irrationally? 

Of course they are. Markets act irrationally all the time, and especially when trading short squeezes.

I'm sure you've heard the term, "market can stay irrational, longer than you can stay solvent"? Well, that's true, and especially true, if you're a short seller. 

Bloomberg guest claims "there's nothing irrational" about the recent market action 😂 $SPX #Nasdaq

— Veteran Market Timer (@3Xtraders) November 15, 2023

The only reason Bloomberg would have a guest on to claim that the market was not being irrational, is because it is.... 

First we were led to believe that a Fed Pause was hawkish (bearish), and and today we're supposed to believe that a Fed Pause is bullish lol 

One look at the charts, and the calendar, proves that the market is acting irrationally, not to mention yesterdays CPI number was nothing spectacular. 

$XLK Technology - gaps up to new highs, in order to force capitulation. 

It was not only tech that led yesterday's rally. 

I made big gains in several different sectors. 

In fact I spent most of the morning taking profits..

I'm done taking profits in Gold miners ($GDXU) - up 14%. In biotech - up 14%. $PLUG up 20%. It was a good trading day.

— Veteran Market Timer (@3Xtraders) November 14, 2023

I'm still unsure if the bulls will get paid on their bullish Options, on Friday, and I think some giveback is overdue. 

Take care, AA

 

Tweet