The analyst believes Caterpillar (CAT) is in a parabolic move with stretched margins and expects the stock to drop hard, aligning with Burry's short position.
CAT is in a clear parabolic move, not cheap, margins are stretched, and it was chased, leading to an expectation of a hard drop.
$CAT Why did Burry Short $CAT here? Because it is in a clear parabolic move It is not cheap Margins are stretched And it was chased This will drop hard. If Burry has signaled the top, then he'll close his short at $579 Let's see We were correct on $PLTR. https://t.co/f7pI3ELCAq
| Horizon | Raw move | vs SPY |
|---|---|---|
| 1 day | -2.8% | -2.7% |
| 1 week | -4.4% | -4.3% |
| 1 month | -17.8% | -18.0% |
| 3 months | — | — |
| 6 months | — | — |