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‘The Big Short’ investor Michael Burry has again caused a social media furor with a one-word tweet: ‘Sell.’
The tweet, which at the time of writing has already garnered 2.1 million views, comes a few hours ahead of the Federal Reserve’s monetary policy announcement.
Screenshot from Burry’s Twitter
Burry, who rose to prominence betting against the housing market in the run-up to the financial crisis, has been bearish on the market which he indicated last week using a chart appearing to be that of the S&P 500 index during 2002.
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Chart: Burry’s chart highlighted the region between mid-Sept. 2001 and mid-March 2002 when the S&P 500 rose 18% following the stock market crash in the wake of the 9/11 attacks. This was the period, as Burry highlighted in his chart, where the 50-DMA (daily moving average) crossed over the 100-DMA indicating a bullish trend.
However, between March 2002 and Sept. 2002, the market shed a whopping 30%, clearly highlighting the fallacies of false breakouts that many investors follow and often fall into traps.
Price Action: The S&P 500 has gained over 6% in 2023 so far. The SPDR S&P 500 ETF Trust SPY has gained 6.74% while the Invesco QQQ Trust Series 1 QQQ gained 11.4% during the period. Only time would tell whether the Fed decides to slow down its rate hike pace, whether the markets cheer the central bank’s language and whether a soft landing would really be the case. Till then, as experts say, it’s all speculation!
Michael Burry illustration by Gonzalo Lanzilotta for Benzinga.
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Image and article originally from www.benzinga.com. Read the original article here.