Software (IGV): The software benchmark declined ~2% and continues to consolidate along its 50-DMA ($83). Quantitative metrics
are mixed, with A/D Rating of C+ and Up/Down Volume ratio slightly below 1. Six of the 11 software groups are in the top 50 O’Neil
groups. Overall, only three of the groups showed an improvement in Group Rank over the last four weeks – Computer SftwrDatabase, Computer-Data Storage, and Computer Sftwr-Medical. The remaining groups showed a decline in Group Rank over the
same period with Computer Sftwr-Desktop (#157) and Computer Sftwr-Design (#83) registering the steepest decline. Notable
earnings this week include ORCL (03/11), PATH (03/13), S (03/13), and ADBE (03/14). Overall, we remain cautiously constructi
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
Key points from this week’s report:
Please refer to the attached PDF for the full report.
- Brazil’s Bovespa declined 0.2% last week, but remains in a Confirmed Uptrend with only two distribution days. We recommend clients add risk in Brazilian equities.
- Mexico’s main benchmark index declined 2.0% last week. The index was shifted to an Uptrend Under Pressure from a Confirmed Uptrend. We recommend clients selectively add risk in Mexican equities.
- Last week, we removed Gruma (GRM.MX; GRUMAB:MM) from the Focus List, reducing the total number of Focus List ideas in the LATAM region to nine. Alsea (ALE.MX; ALSEA*:MM) is actionable.
- Stocks of Interest: Inter (IP9.BR; INBR32:BZ), Grupo Mateus (GMO.BR; GMAT3:BZ) and Cyrela Brazil Realty (3CY.BR; CYRE3:BZ).
O’Neil TMT Weekly
Software (IGV): The software benchmark gained ~2.6% and has reclaimed all its moving averages after a sharp pullback below its
50-DMA last week. Quantitative metrics are mixed, with A/D Rating turning positive, while Up/Down Volume ratio has weakened to 1.0.
RS line also continues to trade sideways. Six of the 11 software groups are in the top 50 O’Neil groups. Overall, only two groups
showed an improvement in Group Rank over the last four weeks – Computer Software-Database and Computer Software-Medical.
The rest of the groups showed a decline in Group Rank over the same period with Computer Software-Desktop (#143) and Computer
Spec-Enterprise (#105) registering the steepest decline. Notable earnings this week include FL-rated CRWD (03/05) and MDB
(03/07), along with GTLB (03/04) and IOT (03/07). Overall, we remain cautiously constructive on the IGV and its constituents. Monitor
extended names and stocks breaching key support levels with declining relative strength.
Select Ideas from the TMT Conference
Key points from this report:
- Select Ideas are displaying good or poor O’Neil ratings and ranking along with technical strength or weakness.
- Included are 15 annotated charts. Stocks include:
- TYL
- HUBS
- NVDA
- AMD
- STX
- ENTG
- NWSA
- NFLX
- DIS
- META
- PINS
- HPQ
- MTCH
- IPG
- CMCSA
LATAM Weekly Summary
Key points:
• Brazil’s Bovespa index gained 0.5% last week, but closed below its 50-DMA. It remains
in a Confirmed Uptrend with one distribution day. We recommend clients add risk in
Brazilian equities.
• Mexico’s main benchmark index declined 0.8% last week and is testing support at the
50-DMA. The index remains in a Confirmed Uptrend with four distribution days. We
recommend clients add risk in Mexican equities.
• The total number of Focus List stocks in the LATAM region remains at 10. Banorte
(GTB.MX; GFNORTEO:MM) and Coca-Cola Femsa (KFBL.MX; KOFUBL:MM) are
actionable.
• Stocks of Interest: Grupo Mateus (GMO.BR; GMAT3:BZ), Itau Unibanco (IU4.BR; ITUB4
BZ), Inter (IP9.BR; INBR32:BZ), Vibra Energia (PRB.BR; VBBR3:BZ), Gentera (CSV.MX;
GENTERA*:MM) and Arca (ARC.MX; AC*:MM).
O’Neil TMT Weekly
Software (IGV): The software benchmark declined for a second consecutive week, closing ~1% lower. The index breached its 10-
and 21-DMA ($425/428) but bounced off support at its 50-DMA ($414). Quantitative metrics have deteriorated during the week, with
A/D Rating turning negative and Up/Down Volume ratio weakening to 1.2. RS line turned lower after reaching a 52-week high two
weeks ago. Of the 11 software groups, seven are in the top 50 O’Neil groups. Overall, four groups showed an improvement in Group
Rank over the last four weeks, led by Computer Software-Database and Computer Software-Medical. Seven groups showed a
decline in Group Rank over the same period, with Computer Software-Desktop registering the steepest decline. Notable earnings this
week include FL-rated WDAY (02/26), SNOW (2/28), and CRM (02/28), along with U (02/26), OKTA (02/28), ADSK (02/28), VEEV
(02/29), and ZS (02/29). Overall, we remain cautiously constructive on the IGV and its constituents. Monitor extended names/stocks
breaching key support levels.
LATAM Weekly Summary
Key points from this week’s report:
Please refer to the attached PDF for the full report.
- Brazil’s Bovespa index gained 0.6% last week and continues to trade near 52-week highs. It remains in a Confirmed Uptrend with only two distribution days. We recommend clients add risk in Brazilian equities.
- Mexico’s main benchmark declined 0.3% last week. The index remains in a Confirmed Uptrend with three distribution days. We recommend clients add risk in Mexican equities.
- Last week, we removed Oncoclínicas (ODB.BR; ONCO3:BZ) from the Focus List, reducing the total number of Focus List stocks in the LATAM region to ten. Banorte (GTB.MX; GFNORTEO:MM), Alsea (ALE.MX; ALSEA*:MM) and Coca-Cola Femsa (KFBL.MX; KOFUBL:MM) are actionable.
- Stocks of Interest: Cia. Siderurgica Nacional (DN3.BR; CSNA3:BZ), Itau Unibanco (IU4.BR; ITUB4 BZ), Cury Construtora (CCE.BR; CURY3:BZ), Gentera (CSV.MX; GENTERA*:MM) and Arca (ARC.MX; AC*:MM). Additional names are listed on page 3.
O’Neil TMT Weekly
Software (IGV): The software benchmark pulled back 3% and is testing support at its 21-DMA ($428) after rising for five consecutive
weeks. Quantitative metrics continue to remain constructive, with Up/Down Volume ratio above 1 and a high RS Rating of 88. RS line
is also consolidating near highs. Software groups continue to be in favor, with seven of the 11 software groups in the top 50 O’Neil
groups. Also, seven of the groups showed an improvement in Group Rank over the last four weeks, led by Computer Sftwr-Design,
Computer Sftwr-Database, Computer Sftwr-Medical, and Computer Sftwr-Gaming. Computer Sftwr-Desktop and Computer SftwrEdu/Media showed the steepest weakening in Group Rank over the same period. Notable earnings this week include FL-rated PANW
(02/20) and SNPS (02/21). Although the IGV is due for a consolidation, we remain constructive on software ideas.
LATAM Weekly Summary
Key points from this week’s report:
Please refer to the attached PDF for the full report.
- Brazil’s Bovespa index gained 0.7% last week. It was upgraded to a Confirmed Uptrend as the index recorded a follow-through day on February 6. We recommend clients add risk in Brazilian equities.
- Mexico’s main benchmark index declined 1.5% last week after hitting resistance near its prior high. The Mexican market is in a Confirmed Uptrend with three distribution days. We recommend clients add risk in Mexican equities.
- Last week, we removed Petro Rio (HRT.BR; PRIO3:BZ) from the Focus List, reducing the total number of recommendations in the LATAM region to 11. Banorte (GTB.MX; GFNORTEO:MM), Alsea (ALE.MX; ALSEA*:MM) and Mercadolibre (MELI) are actionable.
- Stocks of Interest: Itau Unibanco (IU4.BR; ITUB4 BZ), Cury Construtora (CCE.BR; CURY3:BZ), Regional (GFR.MX; RA:MM) and Arca (ARC.MX; AC*:MM). Additional names are listed on page 3.
O’Neil TMT Weekly
Software (IGV): The software benchmark rose for a fifth consecutive week, gaining 2.9% last week. The index is trending along its short-term averages with support at its rising 10- and 21-DMA ($430/422). Quantitative metrics remain constructive, with Up/Down Volume ratio above 1 and a high RS Rating of 90. RS line is also trending higher. Of the 11 software groups, five are in the top 20 of the 197 O’Neil groups. Overall, eight of the groups showed an improvement in Group Rank over the last four weeks, led by Computer Sftwr-Design (ALTR), Computer Sftwr-Database (MDB), Computer Sftwr-Medical (VEEV), and Computer Sftwr-Gaming (NTDOY). Computer Sftwr-Financial and Computer Sftwr-Edu/Media showed a decline in Group Rank over the same period. Notable earnings
this week include: CDNS (02/12), DDOG (02/13), SHOP (02/13), HUBS (02/14), TWLO (02/14), GLOB (2/15), and PCOR (2/16). Overall, we remain constructive on the IGV and its constituents.
