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 rose 2.1% last week, marking its fourth consecutive week of gains. The index remains in a Rally Attempt. We recommend clients wait for a follow-through day to add risk in Brazilian equities.
  • Mexico’s main benchmark gained 5% last week and reclaimed its 200-DMA. The index was shifted to a Confirmed Uptrend from a Rally Attempt. We recommend clients add risk in Mexican equities.
  • The total number of Focus List stocks in the LATAM region remains at five. Inter (IP9.BR; INBR32:BZ) and Grupo Comercial Chedraui (CHD.MX; CHDRAUIB:MM) are actionable.
  • Stocks of interest: Santos Brasil (STB.BR; STBP3:BZ), Embraer (EA3.BR; EMBR3:BZ) and Cury Construtora (CCE.BR; CURY3:BZ).

O’Neil TMT Weekly

Posted on by Romeo Alvarez

Software (IGV): The software benchmark pulled back ~1.8% and is currently forming a 20-week cup-with-handle consolidation with a
pivot of ~$88. Next support is along its rising 21-EMA ($85.7). Quantitative metrics were mixed over the last week, with Acc/Dist
Rating decreasing to 4 from 14, while Up/Down Volume ratio still remains above 1. The RS line had a sharp decline with a RS Rating
of 71, down from 83 last week. Similar to the general market, the IGV is under rotation from large cap to SMID ideas. Stand out SMID
ideas at pivot or setting up include APPF, CYBR, VRNS, and SSNC. Only six of the 11 software groups in the O’Neil 197, have
improved in Group Rank over the last four weeks. Desktop (#141), Design (#109), and Gaming (#117) showed the sharpest
improvement, followed by moderate improvement in Spec Enterprs (#52), Financial (#20), and Database (#6). Continue to focus on
ideas that are either breaking out or forming the right side of their base. Trim ideas breaching key moving average supports 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 benchmark gained 1.9% last week and retook its 50- and 200-DMAs. Although the action was constructive, the index remains in a Rally Attempt. We recommend clients wait for a follow-through day to add risk in Brazilian equities.
  • Mexico’s main benchmark declined 0.2% last week and continues to hit resistance at the 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 five. Nu Holdings (NU) is actionable.
  • Stocks of interest: Cury Construtora (CCE.BR; CURY3:BZ), Santos Brasil (STB.BR; STBP3:BZ) and Weg (WG3.BR; WEGE3:BZ).

O’Neil TMT Weekly

Posted on by Romeo Alvarez

Software (IGV): The software benchmark is testing the pivot (~$88) of a stage-two 20-week consolidation after five consecutive
weeks of gains. Quantitative metrics have improved over the last five weeks, with an Up/Down Volume ratio above 1 and a positive
Acc/Dist Rating of 14/B-. The RS line is also starting to show signs of consistent improvement with a RS Rating of 83, up from 43 five
weeks ago. Multiple stocks are building the right side of their base and setting up, including APPF, CYBR, DDOG, MNDY, and SNPS.
Ten of the 11 software groups in the O’Neil 197, have improved in Group Rank over the last four weeks with Desktop (#97), Design
(#81), and Enterprise (#74) showing the sharpest improvement. Continue to focus on ideas that are either breaking out or forming the
right side of their base. Trim ideas breaching key moving average supports 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 gained 2.1% last week and is attempting to break above the 200-DMA. The index remains in a Rally Attempt. We recommend clients wait for a follow-through day to add risk in Brazilian equities.
  • Mexico’s benchmark index declined 0.7% last week. 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 five. Nu Holdings (NU) is actionable.
  • Stocks of interest: Cury Construtora (CCE.BR; CURY3:BZ), Santos Brasil (STB.BR; STBP3:BZ), Embraer (EA3.BR; EMBR3:BZ) and Weg (WG3.BR; WEGE3:BZ).

O’Neil TMT Weekly

Posted on by Romeo Alvarez

Software (IGV): We continue to see incremental improvements across the software benchmark. The IGV is forming the right side of
a stage-two 20-week flat base after clearing above resistance at ~$85 and is currently testing the next level of resistance at ~$87.
Quantitative metrics have improved over the last four weeks, with an Up/down Volume ratio above 1 and a positive Acc/Dist Rating of
14/B-. The RS line is also starting to show signs of consistent improvement with a RS Rating of 81, up from 58 in four weeks.
Leaders at or slightly above their pivot include CRWD, FICO, GWRE, and ORCL. However, multiple stocks are building the right side
of their base and setting up, including APPF, CYBR, DDOG, MNDY, and NOW. Nine of the 11 software groups in the O’Neil 197, have
improved in Group Rank over the last four weeks with Security (#57), Tech Services (#56), and Desktop (#143) showing the sharpest
improvement. Continue to focus on ideas that are either breaking out or forming the right side of their base. Trim ideas breaching key
moving average supports 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 gained 1.4% last week and was shifted to a Rally Attempt. We recommend clients wait for a follow-through day to add risk in Brazilian equities.
  • Mexico’s main index gained 1.1% last week. 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 five. Inter (IP9.BR; INBR32:BZ) is actionable.
  • Stocks of interest: Embraer (EA3.BR; EMBR3:BZ), Marfrig (MFA.BR; MRFG3:BZ), Weg (WG3.BR; WEGE3:BZ), Grupo Aeroportuario del Sureste (AUS.MX; ASURB:MM) and Cencosud (CNS.CL; CENCOSUD:CI).

O’Neil TMT Weekly

Posted on by Romeo Alvarez

Software (IGV): The software benchmark continues to gradually improve and has regained its 100-DMA ($83) albeit on below average volume. However, the IGV is currently trading above all key moving averages. The index is forming the right side of a stagetwo 19-week flat base, with a pivot of $88.8. Next resistance is at $85.2. Quantitative metrics have improved over the last four weeks, with an Up/Down Volume ratio above 1 and a positive Acc/Dist Rating of 8. RS line continues to lag since peaking in early-February. Only a few ideas including MSFT, CRWD, ORCL, and TYL are near their pivot and are actionable, while most other ideas including
SNPS and EA are setting up and are forming the right side of their respective bases. Tech Services ideas including ACN, CTSH, and WIT were the major gainers last week. Six of the 11 software groups in the O’Neil 197, have improved in Group Rank over the last four weeks with Edu/Media (#79), Gaming (#134), and Design (#124) showing the sharpest improvement. Continue to focus on ideas that are either breaking out or forming the right side of their base. Trim ideas breaching key moving average supports 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 declined for the fourth consecutive week and closed 0.9% lower last week. The index is below its 200-DMA and is in a Downtrend. We recommend clients avoid adding risk in Brazilian equities.
  • Mexico’s benchmark index declined 1.4% last week. The index is trading 4% below its 200-DMA and is in a Rally Attempt. We recommend clients wait for a follow-through-day to add risk in Mexican equities.
  • Last week, we removed Alsea (ALE.MX; ALSEA*:MM) from the Focus List, reducing the total number of Focus List stocks in the LATAM region to five. Inter (IP9.BR; INBR32:BZ) is actionable.
  • Stocks of interest: Embraer (EA3.BR; EMBR3:BZ), Gruma (GRM.MX; GRUMAB:MM), Cencosud (CNS.CL; CENCOSUD:CI) and Grupo Aeroportuario del Sureste (AUS.MX; ASURB:MM).

O’Neil TMT Weekly

Posted on by Romeo Alvarez

Software (IGV): The software benchmark rose 3.3% last week on above average volume. It is forming the right side of a stage-two 18-week flat base, with a pivot of $88.8. Resistance is at its 100-DMA ($83.5), followed by $85.2. On the downside, support is near $81.4 (10/21/50-DMA). Quantitative metrics have improved over the last week, with an Up/down Volume ratio and Acc/Dist Rating rising week-over-week. But, RS line continues to lag since peaking in early-February. Actionable large caps include MSFT, ORCL, and FICO, while CDNS and SNPS are forming the right side of their respective bases. Other movers from last week include SHOP,
ADBE, HPE, and CRWD. Six of the 11 software groups in the O’Neil 197, have improved in Group Rank over the last four weeks with Gaming (#144), Services (#78), and Edu/Media (#103) showing the sharpest improvement, followed by Design (#142) and Financial (#34). Medical (#151) declined the most. Continue to focus on ideas that are either breaking out or forming the right side of their base. Trim ideas breaching key moving average supports on declining RS lines.