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Friday, November 14, 2025

Michael Burry Capitulates - The Real Driver of Yesterday's Sell-Off

Digging for Cockroaches with GrokIn doing a little due diligence into the cause of yesterday's sudden sell-off—I thought I better do a thorough check under the hood for any hidden cockroaches—so I employed the help of my trusty AI sidekick Grok.   Question:
Pre-market weakness, seems to have started overseas. Anything popping up on your radar? India, Japan, Germany, ECB? Also can you find any information on this story I'm seeing in my TOS live news feed?

UBS Alli McCartney on CNBC Squawk Box

“There are a lot of reasons we should be seeing more volatility than we have.”
(37 min. ago, CNBC.com)
 
Cue the $VIX—which landed right on the magically bearish 20 number as we traded into Yesterday's close. (Soft landing? More like a fear spike—up 15% intraday on the tech rout.) Soft landing on the 20 target – documenting the "bear trap" setup. 

 One quick TOS screenshot and query later:  Grok's Radar: Nothing Flagged 
You're spot on that the U.S. pre-market dip appears to be bleeding in from Asia and Europe, where mixed economic signals, currency pressures, and sector-specific slumps—nothing catastrophic, but enough to amplify caution ahead of U.S. CPI data later today. [edited for content]  In short: Nothing stands out. As for the CNBC segment I highlighted (in the screenshot above): Volatility remains low because the holidays are coming—and what does the $VIX measure? Expected volatility. What does the market expect over the holidays? Low volume/low vol. This is not rocket science.  One Reason CNBC Might Be Pushing the Bearish Narrative:
Disney earnings face-planted—and that no doubt contributed to some of the selling we saw yesterday. BUY BUY BUY SELL SELL SELL  Here I am rubbing salt in the wound:
Walt Disney trade obliterates CNBC Pro traders 😂 $DIS 
  Then CNBC prime-time Squawk Box brings on a guest to talk up volatility? This stinks to high heaven! Same bear trap I warned you about weeks ago. I'll have to search for the link... 
Burry's Fold: Capitulation or Capital Call?The real cockroach? Michael Burry's exit. Reuters broke it yesterday: Scion Asset Management deregistered with the SEC as of Nov 10—shutting down after $155M AUM.

Burry's sin: Massive PLTR puts (50K contracts, $9.2M premium, 2027 expiry) to call the AI top. $PLTR pulled back... but holds above $150.  Bears on the Street? Took it as pure capitulation. The Big Short guy bailing amid "rigged markets" and "accounting tricks" (Nvidia, MSFT depreciation games)? Cue the sympathy dump—tech led the rout, Nasdaq -2%.  My take: Not flipping bullish—it's capital preservation. Burry tweeted: "On to much better things Nov 25th." Two years tied up on slim-odds bets? Smart fold to reassess. Still laser focused on the AI bubble.  Winning's not about making BIG predictions. It's:  

  • Patience: Wait for the iron hot. 
  • Adaptation: Walk from the table. Reassess.
  • Discipline: Plan B to fight another day.

Window Dressing: Mag7's Revenge

Update to the public charts folder—Including yesterdays #1 under-performer in the Mag7 space

—the one they love to hate—TESLA $TSLA. Managers pretend Mag7 doesn't matter. Sell Tesla? Fine. We've seen the script. Q4 dressing: Buy the beaten, bury the bombs.
CPI May Cut Through the FakeryOverseas noise? Meh. Burry? Tactical retreat, not a white flag. CNBC? Peak fakery (fuckery)—Disney dump + VIX pump for clicks. Eyes on 8:30 AM ET: CPI.
  • Hot print? Mag7 bleeds—capitulation feels real.
  • Cool print? Trap snaps—VIX craters to teens, dressing ignites.

Iron's cooling—but patience reloads. Fade it. Position. Stay ahead. — Veteran Market Timer
November 14, 2025 — Pre-CPI Cockroach Hunt Take Care, AA  

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