AI Fears Are Driving Rotation as Short Covering Is Fueling the Bounce!

Mary Ellen McGonagle
by Mary Ellen McGonagle,
President, MEM Investment Research

Mary Ellen analyzes how AI disruption fears are driving capital rotation away from the headline technology stocks and into defensive and yield-oriented areas. She explains how elevated short interest has set the stage for powerful short-covering bounces, creating sharp upside reversals even as broader pressure persists. In addition, Mary Ellen walks through the charts showing weakness in mega-cap tech, relative resilience in equal-weight indexes, and strength in dividend-focused and defensive sectors.

This video was originally recorded on February 13, 2026. New videos from Mary Ellen premiere weekly on Fridays. You can view all previously recorded episodes at this link.

If you're looking for stocks to invest in, be sure to check out the MEM Edge Report! This report gives you detailed information on the top sectors, industries and stocks so you can make informed investment decisions.

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Mary Ellen McGonagle
About The Author:

Mary Ellen is a professional investing consultant and president of MEM Investment Research. After starting her career on Wall Street, she spent years working under William O’Neill to identifying healthy stocks with potential to take off. Learn More 

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