David Tepper covers his short bets in the Nasdaq and treasuries.
Shorts are derivatives, where the underlying value is based on the physical asset and where the investor believes the asset price will fall sometime in the future.
When investors cover shorts, they have to buy the asset they borrowed, often from retail investors’ broker accounts, and the difference between the high price they borrowed and the lower price they paid to buy the asset to cover the short is their profit.
If you are a retail investor holding a non-custodial account, ask your broker whether your shares are lent to institutional short sellers, the likes of David Tepper.
It is just another way the big club shonks the retail investor.


“Shorts are derivatives, where the underlying value is based on the physical asset and where the investor believes the asset price will fall sometime in the future”
WEALTH TRAINING COMPANY
David Tepper covers his short bets after futures tumble, recently as low as 3960, the lowest since April 2021
Futures then reversed and spiked higher.
CNBC’s Jim Cramer’s, mad money clown, reported that hedge fund legend David Tepper, whose “Balls to the Wall” comment 12 years ago sent stocks soaring higher, has covered his Nasdaq – and treasury shorts.
“I was talking to David Tepper who’s been short. He covered his short, and feels that the selloff could be concluding” said Jim Cramer who added that, “forced sellers equal bottom, and it is a great time to be able to take a shot.”
The mainstream view is that the market is fretting over Fed tightening in a stubbornly high inflation environment combined with the economy going headfirst into a recession.

“I was talking to David Tepper who’s been short. He covered his short, and feels that the selloff could be concluding”
JIM CRAMER
But we don’t believe that the Fed or a coming recession is causing billions of dollars of wealth destruction. Two years ago, global economies were in lockdown, complete standstill, and stocks soared in value. So it is not a global slow down or Fed monetary policy which has become more balanced in the latest May Fed meeting, causing the meltdown in all assets. The Fed has acknowledged that they have no policy tools to combat cost-push inflation driven by supply.
“The human race has never before been so close to nuclear war, maybe more so than the Cuban missile crisis, where the caliber of western leadership has deteriorated to buffoonery and where the Joe public is oblivious to the risk might be why investors are selling everything” – Wealth Training Company
The human race has never before been so close to nuclear war, maybe more so than the Cuban missile crisis, where the caliber of western leadership has deteriorated to buffoonery and where the Joe public is oblivious to the risk might be why investors are selling everything.
Nevertheless, David Tepper covers his short bets, including his bond shorts
In terms of levels, Tepper thinks that Nasdaq will hold 12,000 and is a buyer of the S&P if it drops lower; the Appaloosa trader also thinks the 10Y will trade in the range of 2.9% to 3.2%, after being “pretty vocal against bonds.”
But David Tepper is an ultra-successful short-term trader who might see a short-term relief rally.