This is supposed to be the time of year when bears go into hibernation.

Somebody forgot to tell that to the bears.

All of the major indices are trading in the red so far this month – and November has historically been one of the strongest months of the year. Over the past 20 years, the S&P 500 has delivered an average return of 2.2% – and has finished in the green 74% of the time.

And yet, last week was tough for several of our AI- and data center-related stocks.

Shares of Palantir Technologies, Inc. (PLTR), NVIDIA Corporation (NVDA) and Super Micro Computer, Inc. (SMCI) all pulled back over the past week.

I discussed how fears of an “AI bubble” were weighing on these stocks in a previous Market 360 – and how mean reversion algorithms were having their way with these stocks (for now).

The good news is, so far this week, we’re seeing a market that refuses to break.

In fact, we’re beginning to see the narratives being spun by the worrywarts on Wall Street begin to fall apart.

For example, stocks jumped yesterday as lawmakers in Washington neared a deal to end the 40-day shutdown. Meanwhile, tech names that had been under pressure finally regained their footing. It was a textbook relief rally – but one built on real strength underneath.

Here’s the thing… When you get a “shock” like we saw last week – especially those mean reversion swings that disrupted our AI leaders and data center companies – the key is to watch the aftershocks. They should keep getting smaller until the selling pressure dries up. That’s exactly what’s happening now.

We’ve seen this pattern before. A few weeks ago, the gold market suffered its biggest one-day sell-off in 12 years – then rebounded just as quickly. It’s a good reminder that strong sectors tend to recover fast once selling pressure subsides.

Gold’s resilience is one example, and it mirrors what I expect from today’s market leaders in AI and data centers: short-term shocks, followed by renewed strength once the dust settles.

In the meantime, we need to remember that earnings are “working.” FactSet reports that 91% of S&P 500 companies have now released quarterly results, with 82% of these companies topping analysts’ earnings expectations. The S&P 500 has posted an average 7% earnings surprise, which, in turn, has boosted the S&P 500’s earnings growth rate to 13.1%.

This Week’s Ratings Changes

The bottom line is with strong earnings growth, easing uncertainty and a seasonal tailwind into the holidays, the foundation for higher prices remains solid.

That’s why I view the recent volatility as rotation – not retreat.

To pinpoint where leadership is shifting, I took a fresh look at the latest institutional buying pressure and each company’s financial health and decided to revise my Stock Grader (subscription required) recommendations for 165 big blue chips (subscription required). Of these 165 stocks…

• Twenty-three stocks were upgraded from Strong (B-rating) to Very Strong (A-rating).
• Forty-one stocks were upgraded from Neutral (C-rating) to Strong (B-rating).
• Thirty-two stocks were upgraded from Weak (D-rating) to Neutral.
• Eleven stocks were upgraded from Very Weak (F-rating) to Weak.
• Thirteen stocks were downgraded from Very Strong to Strong.
• Twenty stocks were downgraded from Strong to Neutral.
• Sixteen stocks were downgraded from Neutral to Weak.
• And nine stocks were downgraded from Weak to Very Weak.

I’ve listed the first 10 stocks rated as Very Strong below, but you can find a more comprehensive list – including all 165 stocks’ Fundamental and Quantitative Grades – here. Chances are that you have at least one of these stocks in your portfolio, so you may want to give this list a skim and adjust accordingly.

Symbol	Company Name	Quantitative Grade	Fundamental Grade	Total Grade
ASND	Ascendis Pharma A/S Sponsored ADR	A	B	A
BABA	Alibaba Group Holding Limited Sponsored ADR	A	C	A
BSBR	Banco Santander (Brasil) S.A. Sponsored ADR	A	B	A
CBOE	Cboe Global Markets Inc	A	B	A
DG	Dollar General Corporation	A	C	A
ENB	Enbridge Inc.	A	C	A
EXC	Exelon Corporation	A	C	A
FNV	Franco-Nevada Corporation	A	B	A
IDXX	IDEXX Laboratories, Inc.	A	C	A
INCY	Incyte Corporation	A	A	A

How to Multiply Your Edge

Now, my Stock Grader pinpoints the fundamentally superior stocks that institutions are quietly accumulating – the names poised to outperform over the long term.

However, if you want to capture those same trends as they develop, my colleague Jonathan Rose takes a more tactical approach.

Jonathan studies where Wall Street’s most significant money is positioning early – often spotting the same leadership stocks my Stock Grader highlights weeks in advance. During yesterday’s Profit Surge Event, he explained how tracking real-time shifts in buying pressure can help you move in sync with the market’s true leaders.

But that’s not all. Jonathan also showed how applying a simple tweak can multiply the payoff by 500% or more.

If you missed it, don’t worry. You can still catch a replay here to see how Jonathan and I view this evolving market environment – and how you can stay a step ahead as new leadership emerges.

With the Fed easing policy, corporate profits accelerating and investors rediscovering their appetite for risk, there’s no better time to sharpen your strategy for the final stretch of 2025.

Watch the replay now and see what you missed.

Sincerely,

Louis Navellier

Editor, Market 360

The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:

NVIDIA Corporation (NVDA), Palantir Technologies, Inc. (PLTR) and Super Micro Computer, Inc. (SMCI)