All articles tagged with #short positions
Michael Burry, known for predicting the 2008 financial crisis, has recently sold all his holdings and taken major short positions, sparking speculation about a potential market downturn. However, the situation is complex, and experts suggest it may not signal a repeat of the 'Big Short' scenario. Investors should consider the broader context before making decisions.
Bitcoin's price surge has led to the liquidation of $147 million in short positions across cryptocurrencies, with $79 million in BTC shorts wiped out in the past 24 hours. The rally follows significant capital influx into Bitcoin ETFs approved by the U.S. SEC, with $1.1 billion entering digital asset-focused funds last week. Bitcoin is currently trading at $51,680, up over 6% in the past day and 20% in the past week, although it remains 25% below its November 2021 all-time high.
Charles Lemonides, founder of hedge fund ValueWorks, predicts that stocks will struggle for the next few quarters, but believes that identifying undervalued assets can lead to long-term success. Lemonides highlights small-cap holding Hyster-Yale Materials, chip maker Qualcomm, and banking heavyweight Goldman Sachs as some of his favorite stocks. He also mentions investments in Joby Aviation, a leader in electric air taxis, and a handful of senior debt securities in retail and banking. Lemonides has short positions in companies such as TransDigm, R1RCM, Envestnet, and Mister Car Wash, citing overvaluation and potential tax-law selling pressure.
Investment manager Jim Chanos has revealed his 10 short positions for 2023, targeting companies such as NVIDIA, Tesla, Robinhood, Uber, Harley-Davidson, Caterpillar, and Taiwan Semiconductor Manufacturing. Chanos remains skeptical about the market's bullish scenario, citing concerns about valuation levels, rising interest rates, and falling corporate profitability. He has also raised several hundred million dollars to take short positions on US-listed real estate investment trusts, particularly those with exposure to data centers. Chanos believes that these companies face growing competition and potential trouble in the future.
Bitcoin has failed twice to break above the $31,000 level, with futures traders likely responsible for keeping the gains in check. The increase in open interest in stablecoin-margined futures contracts suggests an influx of bearish short positions in the market. The release of a softer-than-expected U.S. consumer price index report further contributed to the retreat from the $31,000 level. This level has now become a key resistance to watch in the short-term. Bitcoin is currently trading at around $30,350.
Bitcoin surged over $28,000 as investors responded to encouraging Q1 earnings from tech giants Google's parent Alphabet and Microsoft, and the liquidation of bitcoin short positions. Ether also rose 1.8% to around $1,869. Meanwhile, major equity indexes closed in the red, with the S&P 500 and Nasdaq Composite down 1.5% and 1.9%, respectively, and the Dow Jones Industrial Average down 1%. The yield on the two-year Treasury note sank 19 basis points to 3.94%, while the 10-year Treasury yield dropped roughly 11 basis points to 3.40%.