Elon Musk Reacts As 'Big Short' Michael Burry Finds His Way Back On Twitter To Take Back 'Sell' Call

"The Big Short" fame Michael Burry had to eat his words after a prediction that went awry.

What Happened: For the uninitiated, Burry put out a cryptic one-word tweet that said “Sell” on Feb. 1, which was sort of premonitory. After a torrid 2022, the stock market was rallying quite nicely in January, with the S&P 500 Index rallying about 6.18%.

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It was against the backdrop, Burry hinted at a potential meltdown. He shared S&P 500 Index’s chart, which showed a 30% plunge in about seven months, beginning in March 2022. He highlighted the period ahead of this timeframe when a bullish crossover occurred.

Around the time, Burry tweeted this historical S&P 500 chart, the index was about to see a bullish crossover. Apparently, the hedge fund manager was suggesting the market was flashing a false signal and a sell-off would follow.

A day after the tweet, Burry, who is notorious for deleting his tweets as well as his Twitter account, once again deleted his account and was missing in action for about a week.

Burry Remerges: On Tuesday, Burry reactivated his Twitter account only to tweet a message, which suggested a reversal in his stance.
He shared the same S&P 500 chart from back in the 2001-02 timeframe and said “This time is different.”

Elon Musk was quick to react to the development. Replying to a quote-tweet of Burry's tweet, Musk said, "Cracks me up every time," followed by the "rolling-on-the-floor-laughing" emoji.

Incidentally, since Burry tweeted “Sell,” the S&P 500 Index has gained 2.14% in five trading sessions. Some positive tech earnings and Fed Chair Jerome Powell’s dovish comments at the presser following the February Federal Open Market Committee meeting have been supportive of the upside.

The market has shrugged off a strong January jobs report and is discounting a Fed pause and potentially a pivot in the second half of the year. John Lynch, chief investment officer at Comerica Wealth Management, cautioned that a retest of October 2022 lows is likely as a mild recession could materialize in the latter half of 2023.

Price Action: The SPDR S&P 500 ETF Trust SPY, an exchange-traded fund tracking the S&P 500 Index, settled Tuesday's session up 1.31%, at $415.19, according to Benzinga Pro data.

Michael Burry illustration by Gonzalo Lanzilotta for Benzinga.

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