Michael Burry says U.S. stocks have gone 182 straight sessions without a broad selloff, a stretch of calm he now reads as a warning rather than reassurance.
Key Points:
- Wednesday marked the 182nd consecutive session without an 80% down-volume day on the New York Stock Exchange.
- Every year over the past three decades has produced at least five such sessions, according to BTIG research.
- Burry holds bearish positions against Nvidia, Micron Technology, Palantir Technologies, Caterpillar and Tesla.
Michael Burry Flags 182-Session Calm Streak
Krinsky tracks sessions in which at least 80% of New York Stock Exchange volume comes from declining stocks. The investor laid out the case in a Substack post Wednesday, citing research from BTIG technical strategist Jonathan Krinsky. Wednesday marked the 182nd consecutive session without one.
The streak ranks as the longest in at least three decades, beating the previous record by close to 50 trading days. Michael Burry, the investor made famous by "The Big Short" for calling the 2008 housing collapse, has spent months arguing that the quiet cannot last.
Also Read: Bank of England Lab Tests Digital Pound And Stablecoins In SME Trade Finance
Jonathan Krinsky Data Shows Three-Decade Record
Krinsky noted that a full calendar year without an 80% down-volume session would be a first in three decades of data. Every year over that span has produced at least five of them.
Burry said he has been writing about fundamental reasons for a break like this since November 2025, and he reads the calm as narrow leadership rather than broad strength.
A small group of AI-linked mega-caps drives most of the index gains, and he holds bearish positions against several of them, including Nvidia, Micron Technology, Palantir Technologies, Caterpillar and Tesla. On Tuesday he dismissed Nvidia's push to unlock more than $500 billion in AI infrastructure financing as a Wall Street stunt.
Burry Warns Leverage, Not Timing, Is The Danger
His core message is about surviving the turn rather than timing it. Large cycles can take months or years to unwind, he said, which makes borrowed money the real hazard for investors waiting one out. "Avoid the leverage, and one is more likely to avoid the folly," he wrote.
One recent blowup showed what that looks like in practice, and investor Ross Gerber cited it as evidence that leverage can bury a fund. Situational Awareness, the AI-focused firm run by Leopold Aschenbrenner, unwound its public stock portfolio last month after heavy losses on AI names, with Citadel taking most of the holdings.
The warning follows a run of similar calls. Burry compared the AI buildout to a gold rush on Aug. 6, saying that today's winners could become tomorrow's ghost towns, and he has raised the prospect of a 1987-style fall.
His bearish AI trade dates to November 2025, when Scion Asset Management disclosed put positions against Nvidia and Palantir.
Read Next: Claude Adds Invisible Watermarks To AI Text Under EU Transparency Rules, Users Push Back
