Quick Read – Burry holds an underwater NVDA put on 1 million shares at $110 and profitable shorts on TSLA and PLTR, refusing to cover. – CAT posted its first-ever $20 billion revenue quarter, yet Burry bets the SOXX’s 80% YTD rally has outrun its earnings. – Burry argues a VIX…
ar 16 triggers a mechanical loop: falling volatility draws in momentum funds, overextending markets before a potential 1987-style reversal. – Don’t wait: the analyst who called NVIDIA in 2010 just revealed his top 10 AI stocks. See the full list FREE now
On Tuesday, August 4, 2026, the S&P 500 rose 1.79% to close at 7,737, its first record high in two months, while the Nasdaq surged 2.6% and the Dow crossed 54,000. The same day, Michael Burry told his Substack subscribers he still sees “a possible 1987-type fall” and is refusing to cover his short book. The contrast between the tape and his warning is the story.
Burry’s argument leans on market plumbing more than fundamentals. He contends that rising markets and falling volatility create a feedback loop: lower volatility invites volatility-targeting funds and momentum strategies to add leverage, which pushes prices higher, which suppresses volatility further. The CBOE Volatility Index closed at 15.86 on August 3, sitting in the “low volatility, market complacency” zone.