When the news broke that famed investor Michael Burry—whose 2008 “Big Short” foresight became legend—had placed large put options against Nvidia (NVDA) and Palantir (PLTR), the market reacted with a collective shudder. Within hours of the disclosure, technology shares that had led the 2025 rally wavered. Headlines proclaimed the “AI bubble” had met its doubter, and retail investors who had crowded into the artificial-intelligence narrative rushed to reassess. The initial pullback in high-beta technology stocks was swift, but not indiscriminate. Beneath the surface, the Stock Trends Weekly Reporter data from October 31 to November 7 revealed a precise rotation in trend strength—one that Stock Trends subscribers could see developing before it hit the newswires.
How Stock Trends Reveals Market Rotation
Every Friday, Stock Trends updates the technical condition of more than 6,000 North American equities, assigning each a Stock Trends Indicator based on the relationship between its short-, intermediate-, and long-term moving averages. Those six indicators—Bullish (
), Weak Bullish (
), Bearish (
), Weak Bearish (
), Bullish Crossover (
), and Bearish Crossover (
)—summarize the direction, strength, and maturity of price trends.
From those weekly classifications, the Stock Trends Inference Model (ST-IM) calculates forward return estimates and probabilities of outperformance over 4-, 13-, and 40-week horizons. The resulting Trend Profile provides a probabilistic outlook—how likely a stock’s trend will outperform its benchmark. In the Stock Trends Weekly Reporter, these probabilities are visible in the Select stocks, where the model assigns a numeric confidence level to anticipated relative strength.
This analytical framework allows investors to respond rationally to sensational headlines. Instead of reacting to fear, Stock Trends users interpret market stress through measurable shifts in trend distribution and changes in forward probabilities.
What Happened Inside the Technology Sector
The Stock Trends universe comparison between October 31 and November 7, 2025—bracketing the Burry news cycle—shows the following changes in the Technology sector:
-
The Late-stage Momentum cohort, characterized by aging Bullish (
) trends with high RSI (105-115) and volume crowding (
), shrank from four to two stocks. Members such as QUALCOMM (QCOM) and Skyworks Solutions (SWKS) exited this category, while one stock flipped to a Weak Bullish () indicator. These are the kinds of names most vulnerable when market enthusiasm peaks—the classic “momentum fatigue” that precedes consolidation. -
The Quality-Defensive cohort, composed of Bullish (
) and Weak Bullish () trends with RSI 95-105, low crowding, the 13-week forward return estimate ≥ the 4-week return estimate (forward slope), expanded from 35 to 60 stocks. Here, the trend strength held firm while speculative pressure eased. -
Within these Quality-Defensive stocks, the average 13-week (ST-IM) forward return estimate increased by 0.29 percentage points, while short-term estimates remained stable—evidence of a healthier time profile.
-
Crucially, this is where Select probabilities appeared: 14 Quality-Defensive stocks carried model probabilities above 60 %, compared with seven a week earlier. Meanwhile, no Late-stage Momentum stocks held a Select signal on Nov 7.
Examples from the Quality-Defensive Select list include Dell Technologies (DELL), Axcelis Technologies (ACLS), Aware Inc. (AWRE), Magic Software Enterprises (MGIC), and Crexendo (CXDO)—each demonstrating mature, orderly uptrends with rising intermediate-term potential and limited crowding.
This evolution illustrates how Stock Trends data quantifies rotation: speculative momentum unwinds while durable, less-crowded trends gain model confidence.
| Symbol | Company | Trend | RSI | 13-wk return expectation (%) | Probability of outperformance 13-wk (%) |
|---|---|---|---|---|---|
| DELL | Dell Technologies Inc. Class C | |
101 | 4.4 | 55.3 |
| AWRE | Aware Inc. | |
104 | 4.6 | 53.7 |
| MGIC | Magic Software Enterprises Ltd. | |
104 | 4.2 | 53.4 |
| BLBX | Blackboxstocks Inc. | |
104 | 4.2 | 53.5 |
| CXDO | Crexendo Inc. | |
105 | 3.8 | 53.3 |
| OUST | Ouster Inc. | |
95 | 3.8 | 53.0 |
| ACLS | Axcelis Technologies Inc. | |
103 | 3.4 | 52.0 |
By contrast, only two names remained in the Late-Stage Momentum sleeve after the Burry-news week, and neither retained ST-IM Select status.
| Symbol | Company | Trend | RSI | 13-wk return expectation (%) | Probability of outperformance 13-wk (%) |
|---|---|---|---|---|---|
| BOSC | B.O.S. Better Online Solutions | |
106 | NA | NA |
| CSGS | CSG Systems International Inc. | |
115 | 3.5 | 53.8 |
Understanding the Signals
In the language of the Stock Trends, this is a textbook sequence of trend maturity and rotation. When the market narrative—here, the AI hype—collides with valuation anxiety, Late-stage Momentum stocks show their vulnerability. They typically carry a high primary trend counter, an overbought RSI, and a high volume tag, all of which combine to form a risk profile the Weekly Reporter makes easy to spot.
By contrast, Quality-Defensive trends reflect the kind of intermediate-term durability that sustains portfolios through volatility. They exhibit balanced momentum—neither overextended nor crowded—and often align with the ST-IM model’s improving 13-week outlook.
For the disciplined investor, this week’s data reiterates an enduring principle: market shocks first punish excess, not strength. By monitoring the proportion of stocks in each indicator group and their forward probabilities, Stock Trends users can visualize when a speculative theme becomes saturated and when capital quietly rotates to stability.
How to Apply the Stock Trends Weekly Reporter
When events like the Burry disclosure hit the news, Stock Trends Weekly Reporter provides a ready roadmap:
-
Check sector trend distributions.
In this case, Technology’s proportion of Bullish (^+) indicators remained high, but the number of Late-stage Momentum names declined. That signals consolidation, not collapse. -
Compare Trend Profiles.
Use the 4-week and 13-week forward return estimates to gauge whether the expected outperformance is front-loaded or sustained. The shift toward higher 13-week values this week implies investors are now rewarding steady performers. -
Identify Select probabilities.
The 13-wk probability of outperforming the benchmark column isolates the stocks with the model’s strongest conviction. As seen here, Select probabilities migrated from speculative names to companies with proven trend maturity—exactly where investors should look for relative strength after a scare. Keep an eye on the STWR ST-IM Select stocks reports. -
Watch for new crossovers.
Over the next few weeks, keep an eye on the Return to Bullish () and Bullish () Crossovers; the earliest sign of a renewed uptrend often appears there before sentiment catches up.
From Headline to Strategy
The “Burry puts” episode reminds investors how quickly narratives shift—and how slowly real trends do. Stock Trends Indicators distill that difference into observable data. What appeared in the headlines as a sector-wide reckoning was, in truth, a rotation from crowded AI momentum to resilient, intermediate-term trends.
For Stock Trends subscribers, the takeaway is clear: don’t trade the headline—trade the indicator. Use Stock Trends Weekly Reporter to spot over-extended stocks before they correct, and rely on the ST-IM Trend Profile to identify where probabilities still favor outperformance. As this week shows, the tools work best when fear replaces euphoria—precisely when the next enduring trend is quietly forming.
Key Takeaways
-
Event: Michael Burry’s disclosed puts against Nvidia and Palantir ignited short-term fear across AI-linked Tech.
-
Market response: Momentum fatigue, not systemic weakness.
-
Stock Trends signals: Late-stage Momentum shrank; Quality-Defensive and Select probabilities expanded.
-
Investor action: Rotate within Tech—reduce crowded
names, accumulate Select stocks with rising 13-week return expectations and stronger probability of outperformance readings.
Stock Trends transforms market noise into measurable signal. By reading Stock Trends Weekly Reporter’s indicators, probabilities, and sector trend profiles, investors learn to navigate market tremors—like the Burry shock—not with emotion, but with disciplined, data-driven clarity.
An admitted cynic, it's obviously very high praise when he says he likes StockTrends because of its "simplicity, utility, openness, [and] honesty," and in addition to having "no hidden agenda" is "understandably documented [and] historically verifiable." And, he adds, "It lets me see a lot of things without doing a lot of work." Globe and Mail
