Michael Burry Just Made A Massive Move (What It Means For You!)

It looks like Michael Bur just added more to his positions. What's going on, guys? It's Ricky here with a quick overall market update. I really hope that you guys learned something new, and if you do, please consider dropping a thumbs up and subscribing if you feel like we earned it. I want to remind you that anything I talk about in this video with any of the softwares I use, they're all going to be linked in the description of this video. So, if you have any questions about it, all you have to do is comment down below, or send me a direct message via Instagram, which is a third link in the description down below. Let's go ahead and jump right into it. So, I want to pull up a series of different companies that Michael Bur has either added to for some of his shorts and also some of his longs. Again, we like to closely follow Michael Bur, not because he's right 100% of the time, because that is definitely not the case, but he has a very interesting take. Um, especially as of right now, there are some positions that he is doing well with, but also he's not, from my understanding, day trading these. So, even if there is a short-term sell-off, as we've seen it in the past before, he doesn't end up covering his shorts. He's more of a kind of like swing trader andor um waits for like the bigger moves to happen. Remember he is I don't want to say notorious but infamous for um the housing bubble crash. The movie The Big Short was made after him. Um has he called out a significant crash in history before? Yes. Has he warned about other crashes and they didn't end up happening? Of course. Again, no one is right 100% of the time. And I want to make sure I lead with that. So, when we talk about his positions, you need to be reminded that no one knows 100% what is going to happen. Markets can stay irrational longer than we can stay solvent. And even for Michael Bur, he's had specific positions that he's had to close because markets being so irrational again can lead for these shorts to turn against him. um he is no longer managing Scion management which was his asset management or hedge fund. Uh he now just kind of updates his users or followers through his substack. So he no longer has to report and directly file with the SEC. That is important to know because these updates are based off of just him posting on his Substack. We don't know exactly necessarily his position, his position size, if it's just the thought or an actual execution that he took with his trades. With that being said, I wanted to first talk about the latest update, and that's that he bought Coreweave shorts. Now, if you're part of my LPP team, we've been talking about Cororeweave because it gapped up from overall lows of $87 to overall highs of 110. And that was after reporting earnings, right? A huge gap up. If you know anything about Coreeave, again, we can plug it in here to the investing pro software. And like I said, every software that I use, there's going to be some form of discounted link. I think the software for investing pro breaks down to like $9 a month. If you want access to this, because I think it's important to do fundamental analysis, not just technical analysis, but very quickly, you can see that Coreweave as of right now trades at a 24p ratio, meaning that it loses money, right? It's a company that produces $7.59 billion a year in revenue, but loses 1.9 billion. Now, is it getting better? That's for you to decide. According to fair value, there's supposedly based off of a series of analysts 28% upside. Again, that's maybe a risk that some of you are willing to take. Not for me. Operates with significant debt burden. Analysts anticipate sales growth in next current year. Quickly burning through cash. I don't like that, especially knowing that it's still not profitable. And then 16 analysts have revised their earnings downwards for the up andcoming period. So again, his latest update is that he bought Coreweee shorts. And I think again, anyone with any form of common sense, Michael Bur aside can see this. If you kind of zoom out to kind of see the bigger picture, you can see that Cororeweave does an excellent job rallying, but it eventually does end up correcting. It pumps and then it dumps. It's kind of built a very consistent resistance range at the 110 120, right? It rallies, it sells off, it gets close to the 113, it sells back off. It has a common support range right around $60 to $70 per share, but a common resistance range right around the 120s. Right? So, as it recently gapped up again, still reporting negative net income, it's not really, I would say, much of a surprise that coreweave is beginning to slightly downturn, right? And not just slightly, from the overall highs. This is one that I do regret not holding longer. We've already closed this short. I'm no longer short on this, but this thing ended up selling off 22%. Now, it's kind of testing the middle ground right around $83. If you actually see from $83, if it ends up recovering to the highs of 110, 32% upside. If it ends up going to the lows of $58, that's about 30% downside. So again, it's almost a one for one ratio depending on how you manage or mitigate risk. But you can see that based off previous patterns. It makes sense on why Michael Bur might have been, you know, like it's not just about taking short positions on companies that, you know, you don't necessarily maybe believe in or align with. That's one thing and that's a fundamental reason to take a short. But another reason could be simply technicals, right? It is technically overbought. It is approaching a previous resistance range where it tends to get rejected. Respecting that patterns tend to repeat themselves, but they don't always have to. I think it made complete sense. This is probably one of my favorite shorts that has already begun to play out. But again, Michael Bur is not a short-term trader. He probably is going to carry this short. Um, unless it rips all the way back down to 60, then I can see him kind of like beginning to either trim or take profits. But I wouldn't be surprised that if for some reason markets push up higher and Corweave goes back up to retest, he's still going to be carrying that same short. Again, he is someone that doesn't tend to overtrade but tends to hold these positions for much longer periods of time based off of the updates that I've seen. He said he added to his Micron short. Now again, you guys know that I've been talking about shorting Micron as well, but lately it hasn't been my favorite. And the main reason why is that we're kind of just consolidating, right? Common support range at the lows of 900. Common resistance range is at the highs of nearly a thousand. It's not really doing much. Again, for Michael Bur, he has the time, he has the money. He sees a much bigger move, right? He believes that eventually all of this is going to fall apart. If you haven't seen kind of like his thesis on how he believes that especially with these AI memory chip companies, he thinks it's cyclical. They're way overvalued. Um, and eventually they're going to come crashing right back down to $100 per share. Again, that is his approach, his opinion, and his trade. I don't have to partake in that. Right. I do agree that in the short term, right, when that fear was getting injected, when I went from highs of $1,200 to lows of 700, that was a lot of fun, right? To be able to intraday, meaning day trade, right? Get in, get out, all within the same day when direction is bearish and we could see that sentiment was bearish. These chip stocks really did begin to sell off quite a bit and very fast, right? But we know that just as quick as they sell off, they rip right back up. And that is one of my reasons on why I feel maybe not the most comfortable holding these shorts because again they've propped themselves back up even when this uncertainty is presenting itself. So I think it's important for me to respect it. Remember I'm not Michael Bur. I'm not here to pretend like I am and I don't have his type of kind of backing also with his money, right? Um he can tolerate a lot more than me and maybe he can tolerate a lot more than you as well. Uh, with that being said, I think that's great for him. But for me, as of right now, it's consolidating way too much where not enough action is happening and it's one of the main reasons that I personally do not care to take this short, at least not right now. Now, Palanteer, I have talked about Palunteer. I even tried shorting Palunteer. If you're part of my LPP team, you would have seen this in my live trading sessions. And don't get me wrong, there are some days that we made money, right, when Palunteer did pull back. But there are other days I called Palunteer Thanos, right? because it just I used to call it Thanos because on its original uh rally nothing could stop it. It was aggreg aggressively and consistently bullish. Right now it's kind of resp-sparked that because it almost went through an entire year of consistent lower highs and lower lows where it went from highs of 207 to lows of 106. A 50% draw down. Very significant. With that being said, after reporting earnings, better than expected, big surprise. Now it's retesting these overbought levels. I think two things can be right at the same time. Yes, Palunteer is overbought. If we plug in Palunteer to the Investing Pro software, you can quickly see that again a lot of get is getting projected ahead of time. P ratio is 148 times its earnings. It's a company valued at, let me pull it up here just to make sure. $447 billion. $447 billion. Yet, it's a company that makes a net income of $3 billion. You are paying a big premium. That's what this is telling me. 148 times from what the company makes to what the company's currently valued at. That is what you actually are paying right now. It's too much of a premium for me. But again, I get it on why people are invested. I get it why people are going long. And that's because direction and momentum are in your favor. Why fight it right now? Does it make sense that I would buy it up here? Well, of course not. Right? In my opinion, riskto-reward. Even if it does end up going back to previous all-time highs, I think that's great. But that's about 11%. if it ends up selling off and markets do begin to downturn because of inflation concerns, because of the labor market concerns, because of the Federal Reserve possibly raising interest rates, because of the tensions in the Middle East. I mean, there's a handful of different reasons because of the, you know, bond crisis. The downside potential is significantly greater, 34%, even just to retest recent previous lows, 42% actually. So, it's very simple for me when I see this is I can respect that yes, this stock is overbought. I wouldn't want to invest in it at these levels, but it's so bullish that I definitely wouldn't want to short it. And this is what I want to say. He just announced that he added to his short again. There was a time that from what we understood, he was shorting Palunteer all the way back down. I'm not too sure if he covered his shorts down at 120, but now it's propped itself right back up to 180 again. I don't know if he covered, but to me, it does make more sense to open up a short up here if you can tolerate the time that it might take for markets to sell off. But again, I would not hesitate in taking profits as we approach back lows of 120. But that's just my two cents. You guys let me know down in the comments section what you think. He thinks that Palunteer is going to be, you know, sub $50 stock. That's a lot of conviction and I think that's great for him, but again, we are not him. we don't have to take the trades just uh you know just because he's taking them and we don't have to hold for the same period of time and price target. Um but as you can see again I have my alerts. I'm ready if Palanteer does begin to sell off and we actually see a break. You see how it's like this ascending uptrend pattern. If we actually see a break of structure uh which again it's no stranger to right when it rallies and then it pulls back and then it actively begins to sell off. when I begin to see that consistency of the sentiment being changed and the direction actually changing, I would love the opportunity to, you know, I don't have to short it aggressively, uh, but maybe, you know, 20 $40,000 shorting Palanteer, have some exposure because the downside is so significant, but also respecting that I don't need to be early to shorting Palunteer to make money, right? We've made more mistakes trying to jump in early and trying to predict for something to happen rather than just waiting for confirmation and preparing, right? We have this saying I mean it goes for either way right long or short. The example I can give you is for going long is you know I would rather be late to a rally than early to a selloff. And what that means is I would rather wait for confirmation and partake when the action is happening rather than jump in early and then still partake in the selloff with the intention of actually going long. Again you guys let me know what you think about that. Um, the other one that I wanted to talk about is the SOXX, which is a semiconductor inverse ETF. I do want to remind you this is a bare ETF if I'm not mistaken. Um, wait, is this one? No, this is the bull ETF. My apologies. So, it looks like he Yeah. So, he's shorting SOXX. The thing that I like about this is that at least he's not doing the inverse double leverage ETF. I think that's the SOXS. Yeah, this is 3x leverage. I think that this is where when he gives his updates, I'm happy to see that it's not with SOXS. He's just doing it with shorting SOXX, which is just a single one forone ETF. You might be saying, well, Ricky, if he's so, you know, confident that it's going to sell off, why wouldn't he want the triple XX leverage? because path dependencies, the rate of decay when you have 3x leverage, and again, we've seen it before. If semiconductor stocks really begin to pick up and it has a 20% day, now you just lost 60% because it's 3x leverage. So, trading shouldn't just be about how much money you could make, but it's also the preservation of capital, right? Making sure you tolerate and put yourself in positions that yield greater reward than they do risk. If you're just as likely to potentially lose as much as you are able to win, then you don't really have a significant edge to make it favorable for you, at least maybe not a trade worth taking for myself. So something to consider. This is why again for beginners, it's not ideal for you to use leverage not on your account and not for ETFs. Leverage ETFs are not investment vehicles. They are leverage ETFs that can go very bad in a very short period of time if direction turns against you. another good reminder. And then he added a series of positions to his longs. These are the ones that I really don't understand, but again, you want to listen because the this is kind of just funny. He's so critical to some of these companies that, you know, are performing so well, especially on the tech side of things. But then he continues to add to his like Lululemon position, which I just really don't understand. Again, don't get me wrong, he added at 115. Okay, maybe maybe he does see something that we don't see, right? Because when we type in Lulu right here on the investing pro software there is right fair value 77% upside just Wall Street does not like it. It's trading at a 9.4xp ratio. So again incredibly low. Uh revenue is still climbing. Net income is fair. So it is trading at a very low premium but it's also not tech focused. Revenue has been growing quarter after quarter. Um and fair value and analyst price targets are significantly greater than where it's currently trading at. Um, with that being said, the price action, I would say speaks for itself. I think that this is where it really comes into, you know, how much conviction do you have behind your investments? He obviously believes in something and he wants to put money behind it. Um, I respect that. Now, just because I respect it doesn't mean that I have to do it as well, right? U, it's been a terrible performing stock for a long period of time with consistent lower highs and lower lows. And this has been something that he's been adding to as it's been selling off. So, this is why I think it's important to not just talk about all of his successes, but also to highlight maybe some areas of opportunity or maybe some trades or investments that just haven't panned out yet. So, you guys let me know in the comments section what you think. Would you ever consider investing into Lulu? Looking at that strong descending pattern, but knowing that fundamentally it is very undervalued. Uh, and then it also seems like he added to his Molina long uh at MOH. Let me go ahead and pull it up here. Oolina Healthcare. And this one's kind of stagnant. It's inconsistent. Um, it came from highs of 400, hit lows of 131, and now trading at highs of 200. Um, I I don't have much to say about this one. This one's all over the place. When I look at the technicals, if we look at the fundamentals, I would imagine that this is a fundamentally $7 million is what it loses. negative 144. Okay, what are we doing here? Yeah, revenue is beginning to decline. So, it looks like it's going through some issues. Again, zooming into the investing pro software. Let's figure out why. One of my favorite things is being able to see this a class action lawsuit allegedly materally uh materally false and misleading statements about financial health ads, legal and reputation risk, compounding investors concerns. The big one beautiful bill could reduce Molina's Medicaid expansion population by 15 to 20% by 2029 and regulatory headwinds including state directed payment forms provider tax caps. Yeah. So there are some concerns about its business in the up andcoming future if policies begin to change. I do remember reading about this one because if I'm not mistaken, Molina Healthcare was actually a stock when we went live with investing.com, one of their top picks. Um, so and from the lows of what it was trading at, right, it looks like it played out pretty well for 2026, right? Lows of 125, hit highs of 138, and now it's kind of just in that middle ground of 200. So, um, the other one that I found to be quite interesting is that um, he also bought calls. This is a way for him to hedge his Nvidia short, but he bought calls on Nvidia leading up to Nvidia's earnings. And I'm sure it paid off for him because Nvidia after reporting earnings at one point it was up like 10% on that given day. So we'll see if he actually ended up taking profits and him hedging that position. Again, he did it with calls, not with shares. So a leveraged way to be able to hedge his current shorts. And then it says he also added to his other shorts of Oracle, Palunteer, Nibius, and Caterpillar. So again, just a quick overall update for you guys when it comes down to this market uh and what Michael Bur has currently or recently been up to. I would love to provide more videos for you guys like this. If you guys would like to see more, all I literally ask you to do is drop a thumbs up and subscribe to the channel. Remember, we do trade live every morning with our LPP team. If you've never watched me trade live, you can actually watch a recent live session. Just click that second link in the description down below. Scroll right below the homepage. There's going to be a preview live trading and you will see exactly what it's like to watch me trade live before you join LPP. If you like what you see, again, we are running a discount right now. And again, if you want to take advantage of that second link down below, it's a onetime payment, lifetime access. And from the investing pro software to the Weeble trading application that I'm using, it is all linked in the description of this video, so feel free to check it out. I appreciate you guys' time. I hope that we're in the thumbs up. Like always, let's make sure that we end the year on a green up. Take care team.