Author: Romeo Alvarez

Romeo Alvarez is a senior equity analyst at William O’Neil + Co., a registered investment advisor serving 400 top-performing institutional portfolio managers worldwide. The firm employs 150 associates in Los Angeles, New York, Boston, and London. Based in the firm’s Los Angeles office, Mr. Alvarez is a senior equity analyst covering the Americas region and a member of the Global Focus List Committee, which approves all equity recommendations for developed, emerging, and frontier markets. Romeo also selects equity initiations to be covered in the Technology sector and regularly reports to clients on innovation and technology developments in Trend Watch. Mr. Alvarez earned a B.S. in Business Economics from the University of California, Riverside, and an MBA with a focus in Finance from Loyola Marymount University, Los Angeles.

LATAM Weekly Summary

Posted on by Romeo Alvarez

Key points from this week’s report:

Please refer to the attached PDF for the full report.

 

  • Brazil’s Bovespa index declined 0.7% last week and undercut support at the 50-DMA. The index remains in an Uptrend Under Pressure with seven distribution days. We recommend clients selectively add risk in Brazilian equities.
  • Mexico’s benchmark index declined 0.3% last week and is trading 11% off-highs. The index was shifted to an Uptrend Under Pressure as it broke below support at the 50-DMA. We recommend clients selectively add risk in Mexican equities.
  • The total number of Focus List stocks in the Latam region remains at six.
  • Stocks of interest: WEG (WG3.BR; WEGE3 BZ), Marcopolo (RL4.BR, POMO4 BZ), Santos Brasil (STB.BR; STBP3 BZ), Telefonica Brasil (TEE.BR; VIVT3 BZ), Alfa (AFA.MX; ALFAA MM) and Falabella Saci (FAL.CL; FALAB CI).

O’Neil TMT Weekly

Posted on by Romeo Alvarez

Software (IGV): The software benchmark is attempting to break out of a large eight-month consolidation and testing resistance at
$88–89. Quantitative metrics remained stable over the last week, with an Up/Down Volume ratio of above 1 and a positive Acc/Dist
Rating of 27, indicating accumulation. Standout ideas near their pivot or on the right side of their base and under accumulation include
ADSK, GEN, JKHY, QTWO, SHOP, TOST, and VERX. Nine of the 12 industry groups showed improvement in group rank over the
last four weeks. Of these, Edu/Media (#36) showed the sharpest improvement, followed by Database (#54) and Financial (#8). We
recommend a selective approach to adding risks as we would like to see the IGV break through and hold about resistance ($89).

O’Neil Global Cryptocurrency Weekly

Posted on by Romeo Alvarez

Commentary: We turn a bit cautious on crypto as GBTC and ETHE were shifted to an Uptrend Under Pressure. GBTC breached its 200-
DMA and is down 7% for the week. ETHE declined 13% for the week and is trading below all its key moving averages. We would turn more
positive if GBTC is able to retake support at the 200-DMA.

LATAM Weekly Summary

Posted on by Romeo Alvarez

Key points from this week’s report:

Please refer to the attached PDF for the full report.

 

  • Brazil’s Bovespa index gained 1.3% last week and is trading 3% off highs. The index remains in an Uptrend Under Pressure with seven distribution days. We recommend clients selectively add risk in Brazilian equities.
  • Mexico’s benchmark index gained 1.1% last week and is trading 11% off-highs. The index recorded a follow-through day and was shifted to a Confirmed Uptrend. We recommend clients add risk in Mexican equities.
  • The total number of Focus List stocks in the Latam region remains at six.
  • Stocks of interest: Arca Continental (ARC.MX, AC* MM), Marcopolo (RL4.BR, POMO4 BZ), Itau Unibanco (IU4.BR, ITUB4 BZ), Weg (WG3.BR; WEGE3 BZ) and Santos Brasil (STB.BR; STBP3 BZ).

O’Neil TMT Weekly

Posted on by Romeo Alvarez

Software (IGV): The software benchmark traded in a tight range for the last seven sessions, just below all-time high resistance at
$88–89. Quantitative metrics remained stable over the last week, with an Up/Down Volume ratio of above 1 and a positive Acc/Dist
Rating of 24. Select standout ideas near their pivot or on the right side of their base and under accumulation include CYBR, PEGA,
PRGS, and TOST. However, for the IGV to break out, we need to see technical improvements in key constituents, including CRM,
INTU, and MSFT. Eight of the 12 industry groups showed improvement in group rank over the last four weeks. Edu/Media (#13) had
the sharpest improvement, followed by Database (#61). We recommend a selective approach until the IGV breaks through resistance
($89) and breadth expands.

O’Neil Global Cryptocurrency Weekly

Posted on by Romeo Alvarez

Commentary: We remain positive on crypto as both GBTC/ETHE continue to trend higher after the crypto market status was shifted to a
Confirmed Uptrend on September 19. GBTC is trading above its 50- and 200-DMA, with next resistance at its 100-DMA (4% away). ETHE is
trading above its 21-DMA, with the next level of resistance at its 50-DMA (2% away). Historically, the crypto sector has seen positive
momentum with rate cuts as investors shift away from low-yielding safe investments in favor of riskier high-yielding investments. Hence, we
recommend investors add positions in stocks with cryptocurrency exposure. Following are the stocks which screen well from the O’Neil
lens:

LATAM Weekly Summary

Posted on by Romeo Alvarez

Key points from this week’s report:
Please refer to the attached PDF for the full report.

Brazil’s Bovespa index declined 2.8% last week and broke below the 50-DMA. The index remains in an Uptrend Under Pressure with five distribution days. We recommend clients selectively add risk in Brazilian equities.
Mexico’s benchmark index gained 0.3% last week, but continues to trade below the 50-DMA and 200-DMA. The index remains in a Rally Attempt. We recommend clients wait for a follow-through day to add risk in Mexican equities.
The total number of Focus List stocks in the Latam region remains at six.
Stocks of interest: Banco Pan (PMP.BR; BPAN4 BZ), Itau Unibanco (IU4.BR, ITUB4 BZ), Marcopolo (RL4.BR, POMO4 BZ), Arca Continental (ARC.MX, AC* MM) and Grupo Aeroportuario del Pacifico (GAP.MX; GAPB MM).

O’Neil TMT Weekly

Posted on by Romeo Alvarez

Software (IGV): The software benchmark is testing all-time highs while attempting to break out from a stage-one nine-week cup-with handle base with a pivot of $87.7 (-2%). Quantitative metrics have improved over the last two weeks, with Acc/Dist Rating rising to 24 from 3, indicating accumulation, while the RS line has turned higher. Standout ideas near their pivot or on the right side of their base and under accumulation include AFRM, CYBR, KVYO, SHOP, TOST, and VRNS. Seven of the 11 industry groups showed improvement in group rank over the last four weeks. Of which, Edu/Media (#38) and Medical (#152) showed the sharpest
improvement. We recommend adding risk to ideas that are breaking out or forming the right side of their bases with a rising RS line. Trim ideas breaching key moving average support levels on declining RS lines.

LATAM Weekly Summary

Posted on by Romeo Alvarez

Key points from this week’s report:

Please refer to the attached PDF for the full report.

 

  • Brazil’s Bovespa index gained 0.2% last week and is trading 2% off highs. The Brazilian market is in an Uptrend Under Pressure with four distribution days. We recommend clients selectively add risk in Brazilian equities.
  • Mexico’s benchmark index gained 1.8% last week. The index was shifted to a Rally Attempt from a Downtrend. We recommend investors wait for a follow-through day to add risk in Mexican equities.
  • The total number of Focus List stocks in the Latam region remains at six. Rede D’or Sao Luiz is actionable.
  • Stocks of interest: Marcopolo (RL4.BR, POMO4 BZ), Itau Unibanco (IU4.BR; ITUB4 BZ), Multiplan (MUL.BR, MULT3 BZ) and Bb Seguridade (BBS.BR, BBSE3 BZ).