Michael Burry of “The Big Short” fame is sticking with his bearish wagers even as the S&P 500 surges to a record high, warning that the rally could still end in a sharp sell-off reminiscent of the 1987 stock-market crash.

“I continue to believe it is possible we are near a major top, and possible a 1987-type fall, but the S&P 500 making new highs likely will bring new money into the market,” Burry said in a Tuesday Substack post.

The S&P 500 jumped 1.9% Tuesday to its first record close since June, buoyed by stronger-than-expected corporate earnings and another drop in oil prices as hopes grew that the Strait of Hormuz could reopen to maritime traffic. The tech-heavy Nasdaq Composite soared 2.7%, extending its gain in just the first two days of the week to nearly 5%.

Burry has been among Wall Street’s most outspoken skeptics of the artificial intelligence boom, arguing that demand for AI infrastructure is being fueled by financing arrangements that may prove unsustainable. He said the market’s advance is creating a self-reinforcing cycle, with declining volatility encouraging systematic investors to increase exposure.

“Remember, the market going up on falling volatility forces vol-targeting funds to leverage up, and brings leverage from other momentum strategies into play,” he wrote.

In the face of the rally, Burry said he continues to hold short positions in the iShares Semiconductor ETF (SOXX), Micron, Nvidia, Caterpillar, Palantir, Tesla and Applied Materials.

The investor said he remains confident in his long-term outlook for those positions, though he added that he would cut his losses if the trades moved decisively against him. All of the positions remain profitable except for his bet against Nvidia, he said.

“Again, shorting is not for everyone,” Burry wrote. “I must short. Most should not.”