Published November 24th 2022

Daily Brief - Burry is so short

TLDR

burry is short

Like a lot of specs, the manager of ‘The Big Short’ fame is big short the market. That might be having a large impact on price action.

Ps if for a moment you thought Burry was talking about his physical height … just know you’re not alone.

Is the market too short to fall?

Burry is not alone in holding bearish speculative positions. The pessimistic narrative is compelling: recession, pmis crashing, rate hikes, expensive valuations, cats and dogs living together, mass hysteria.

It’s a perfect doomsday narrative.

Paradoxically, this might keep the market afloat for a while longer. It’s quite possible that shorts at all-time-lows are one of the key reasons keeping the market afloat in spite of dreadful economics and valuations.

We’ll see if December will give us a classic rally - it did not in the last 5 years.

Favorite Trades List

We added Gold to the list last week. No new additions this week.

🏷️ Value stocks 💵 High-dividend stocks 🏦 US 10y Treasuries 💰 Cash 🟨 Gold ↘️ Call overwriting - for expert skiers only 📈 Curve steepener - for expert skiers only

The Peak & Valley Probability Index

The P&V Index has been pointing to a top in the market for a while now.

peak valley 112322

As a reminder, the index is built on a risk-adjusted and time-adjusted calculation of the size of the recent market moves. The data below is all calculated out-of-sample.

Daily Brief - Burry is so short

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