Love him or hate him, one has to concede that Martin Shkreli is an exceptionally insightful person, having a knack for sniffing out the underlying trends, but impaired by a heavily skewed moral compass. Now, as the Dow Jones index does something it hasn't done since 1978, the infamous former pharma executive wants you to short hyped-up names, including Bitcoin, MicroStrategy, quantum computing stocks, and a cancer-focused biotech firm.
Our readers would presumably recognize Martin Shkreli as the notorious C-suite executive who had jacked up the price of a life-saving drug, Daraprim, by 5,000 percent, winning widespread condemnation and an outright banishment from the wider pharma industry in the process.
Martin Shkreli also spent around four years in prison for securities fraud, only to win an early release in May 2022.
Short $MSTR $BTC $IONQ $RGTI $QUBT $GALT https://t.co/TEtbsRzGQZ
— Martin Shkreli (@MartinShkreli) December 18, 2024
This brings us to the crux of the matter. Martin Shkreli, in his typically brusque manner, recently recommended a short position in Bitcoin, MicroStrategy (MSTR), IonQ, Rigetti Computing (RGTI), Quantum Computing Inc (QUBT), and Galectin Therapeutics (GALT).
Shkreli vs hype-tickers
(and vs one biotech) https://t.co/wpXIiFT3JE pic.twitter.com/HadZ1pS8sb— Breakout Point (@BreakoutPoint) December 18, 2024
Interestingly, except for Galectin Therapeutics, all other short recommendations by Martin Shkreli are up by triple-digit percentages so far this year.
The market’s current state is nothing short of peculiar. The Dow’s ninth consecutive decline, a streak not seen since 1978, is unprecedented when juxtaposed against its position within 5% of its highs or above its 200-day moving average.
This anomaly underscores a broader… https://t.co/OCWABMUUll— Trading Mindset & Data (@MindsetData) December 18, 2024
Of course, given the market's current "peculiar" state, a case could be made for going against the proverbial herd in what are essentially contrarian trades. Consider the following occurrences as buttresses for Martin Shkreli's skepticism around hyped-up names:
- The Dow Jones index just notched its ninth consecutive daily decline, which previously occurred only in 1978.
- The S&P 500's price-to-book ratio has surpassed its Dot-com bubble peak.
- The SPY ETF has now recorded 11 consecutive days when more constituents declined than advanced, which has not happened since 2001.
- Just 26 percent of S&P 500 constituents currently remain above their respective 20-day moving averages, constituting a significant erosion in breadth from the 29th of November, when 84 percent of those constituents remained above their 20-day MA. Such rapid erosions typically herald major turning points.
It's Week 7
In 2013, Bitcoin pulled back in Week 7 of Price Discovery
In 2017, Bitcoin retraced -34% in Week 8 of Price Discovery
In 2021, Bitcoin pulled back -16% in Week 6
Will history repeat?
Or will Bitcoin go against the grain of history?
It doesn't necessarily… https://t.co/yaN7ihtvEq
— Rekt Capital (@rektcapital) December 17, 2024
As for Bitcoin, the world's preeminent cryptocurrency is due a significant pullback, as per historical precedents.
Given the market's current state, Martin Shkreli's contrarian call might just turn out to be particularly prescient.
About the author: Writing is my one incontrovertible passion. Over the past six years, he has authored over 2,200 distinct articles on financial and tech-related topics, spanning nearly 1 million words. And he has been a member of Wcctech mobile team since 2025. As an alumnus of the University of Toronto, Rotman Commerce Program, I bring nuance, in-depth knowledge, and a unique perspective to every topic that I cover. When I'm not writing, I'm traveling the world, exploring hidden confectionaries and restaurants as an aspiring food connoisseur.
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