So far, this November has been rough. As I write this, the S&P 500 is down by about 3%, while the NASDAQ has lost about 5%.
If this keeps up for much longer, we’re in danger of ending the month in negative territory.
That may not sound like a big deal, but I cannot remember very many Novembers when the market went down. I’ve only been at this for 47 years, and maybe my memory is failing me, but this is very unusual.
History backs me up on this. November has finished positive 74% of the time over the past 20 years, posting an average return of 2.2% – the second-strongest month on record.
Even though the federal government shutdown officially ended last week, Wall Street’s response was fairly muted. After an initial rally when it was clear the shutdown would end, stocks then traded relatively sideways to slightly lower for the week.
The fact is, the stock market is still recovering from the AI apocalypse from the previous week.
Mean reversion algorithms wreaked havoc on stocks, even those that have announced better-than-expected quarterly results and provided positive guidance. So, many AI-related stocks were pummeled in the first trading week of November.
Now, there was an impressive short-covering rally in AI-related stocks early last week. But the stock market typically likes to “retest” its recent lows – and we saw that play out on Thursday with the NASDAQ falling more than 2%. The retest continued into Friday.
Why Sentiment Is the Problem
The bottom line is that investors are in a really bad mood, even though we have a lot to celebrate.
Wall Street’s mood should improve dramatically as Thanksgiving draws near. After all, the holidays are a happy time of year, and Main Street’s holiday spirit tends to rub off on the stock market. So, I wouldn’t be surprised if stocks rally in the three trading days leading up to Thanksgiving next week.
Additionally, the negative articles about the stock market are becoming even harder to defend in the wake of the strongest earnings in four years. FactSet reports that 92% of S&P 500 companies have released quarterly results so far, with 82% of them topping analysts’ estimates. The S&P 500 has achieved 13.1% average earnings growth, as well as posted a 7% average earnings surprise.
The good news, though, is that given the recent retest, I think many stocks are now great buys. I encourage you not to be distracted or discouraged by the market’s day-to-day gyrations. We should view every dip as a great buying opportunity, as fundamentally superior stocks should rebound strongly in the coming weeks and lead the overall market higher.
This Week’s Ratings Changes
Now, with that said, I know that the stock market’s volatility is probably weighing on your mind right now. And that’s why it’s important to be positioned in the right stocks.
As I always tell my followers, good stocks bounce like fresh tennis balls – and bad stocks drop like rocks.
So, to find which stocks are sporting the best fundamentals backed by strong institutional buying pressure, I took a look at my Stock Grader (subscription required) recommendations for 141 big blue chips (subscription required). Of these 141 stocks…
- Twenty-five stocks were upgraded from Strong (B-rating) to Very Strong (A-rating).
- Twenty-three stocks were upgraded from Neutral (C-rating) to Strong (B-rating).
- Eighteen stocks were upgraded from Weak (D-rating) to Neutral.
- Eight stocks were upgraded from Very Weak (F-rating) to Weak.
- Fourteen stocks were downgraded from Very Strong to Strong.
- Twenty-five stocks were downgraded from Strong to Neutral.
- Twenty stocks were downgraded from Neutral to Weak.
- And eight 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 141 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 |
| ABEV | Ambev Sponsored ADR | A | B | A |
| APG | APi Group Corporation | A | C | A |
| ARGX | argenx SE Sponsored ADR | A | B | A |
| AZN | AstraZeneca PLC Sponsored ADR | A | B | A |
| EC | Ecopetrol SA Sponsored ADR | A | C | A |
| GILD | Gilead Sciences, Inc. | A | B | A |
| GMAB | Genmab A/S Sponsored ADR | A | B | A |
| GSK | GSK plc Sponsored ADR | A | B | A |
| HCA | HCA Healthcare Inc | A | C | A |
| HMY | Harmony Gold Mining Co. Ltd. Sponsored ADR | A | C | A |
How to Prepare for What’s Ahead
As we prepare for the holidays and the year ahead, I want you to get excited about what’s coming – but I also want you to be prepared.
That’s because I think the mainstream media is only telling us part of the story.
See, while I don’t think we’re in an “AI bubble,” I do think that we need to be ready for a period of tremendous upheaval – both in the market and in our society.
That’s because the AI Revolution is already disrupting our world – and it’s only getting started.
In fact, we’re entering an age I like to call the Economic Singularity.
This is the moment when artificial intelligence becomes the driving force behind our economy. In fact, we’re already seeing this play out – as some economists project that virtually all of our GDP growth this year was driven by the data center buildout.
And in 2026, it’s only going to accelerate.
This shift will be faster and more concentrated than the Industrial Revolution and the Internet combined. I know that may sound scary for some folks. That’s because it is.
But the same technology that’s eliminating jobs is also creating enormous opportunities for investors who act now.
That’s why I created a special briefing – so regular investors can understand the threats and opportunities that are playing out at lightning speed right before our eyes.
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:
argenx SE Sponsored ADR (ARGX)
