The Big Short fame Michael Berry had to eat his words after a prediction that went wrong.

What happened: For the uninitiated, Burry posted a cryptic one-word tweet on Feb. 1 that read, “Sell,” which was sort of a foreshadowing. After a hot 2022, the stock market recovered fairly well in January, with the S&P 500 Index Rally of 6.18%.

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Against the background, Burry hinted at a possible meltdown. He shared the chart of the S&P 500 Index, which showed a 30% plunge in about seven months from March 2022. He highlighted the period prior to this time frame when a bullish crossover occurred.

Around the time Burry tweeted this historic S&P 500 chart, the index was on the verge of a bullish crossover. Apparently, the hedge fund manager was hinting that the market was sending the wrong signal and a sell-off would ensue.

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

Burry reappears: On Tuesday, Burry reactivated his Twitter account only to tweet a message that suggested he had reversed his stance.
Sharing the same S&P 500 chart from the 2001-02 time frame, he said, “This time is different.”

Elon Musk reacted quickly to the development. In response 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 is up 2.14% in five trading sessions. Some positive tech earnings and the Fed chair Jerome Powell‘S restrained comments in the press after February Federal Committee of the Free Market Session supported the upmove.

The market shrugged off a strong January jobs report and is anticipating a Fed pause and possibly a reversal point in the second half of the year. John Lynch, chief investment officer at Comerica Wealth Management, warned…