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 1.4% last week. The index remains in a Rally Attempt and will be shifted back to a Downtrend if it breaks below 126,602. We recommend clients wait for a follow-through day to add risk in Brazilian equities.
  • Mexico’s main benchmark index rose 2.4% last week. The index remains in an Uptrend Under Pressure with five distribution days. We recommend clients selectively add risk in Mexican equities.
  • We added Grupo Comercial Chedraui (CHD.MX; CHDRAUIB:MM) to the Focus List, taking the total number of Focus List stocks in the Latam region to 12. Alsea (ALE.MX; ALSEA*:MM), Coca-Cola Femsa (KFBL.MX; KOFUBL:MM) and Banorte (GTB.MX; GFNORTEO:MM) are actionable.
  • Stocks of Interest: Inter (IP9.BR; INBR32:BZ), Cury Construtora (CCE.BR; CURY3:BZ), Santos Brasil (STB.BR; STBP3:BZ), Cemex (CMC.MX; CEMEXCPO:MM) and Arca (ARC.MX; AC*:MM). Additional names are listed on page 3.

O’Neil TMT Weekly

Posted on by Romeo Alvarez

Software (IGV): The software benchmark rose for a fourth consecutive week, gaining 1.4% last week. The index is trending along its short-term averages with support at its rising 10- and 21-DMA ($424/417). Quantitative metrics remain constructive, with Up/Down Volume ratio above 1 and a high RS Rating of 91. RS line is also trending higher. Of the 11 software groups, eight are in the top 50 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-Spec Enterprs, Computer Sftwr-Design, Computer Sftwr-Medical, and Computer Sftwr-Desktop . Computer Sftwr-Financial, Computer Sftwr-Database, and Computer Sftwr-Edu/Media showed a decline in Group Rank over the same period. This week,
several cybersecurity companies report, including: VRNS (02/05), TENB (02/06), FTNT (02/06), CHKP (02/06), RPD (02/07), NET (02/08), and CYBR (02/08). Other notable earnings include: PLTR (02/05), NTDOY (02/06), PAYC (02/07), PCTY (02/08), TTWO (02/08), SPSC (02/08), and DT (02/08). Overall, we remain constructive on the IGV and its constituents.

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% last week. It was shifted to a Rally Attempt from Downtrend. We recommend clients wait for a follow-through day to add risk in Brazilian equities.
  • Mexico’s main benchmark index rallied 2.5% last week. The index remains in an Uptrend Under Pressure with six distribution days. We recommend clients selectively add risk in Mexican equities.
  • The total number of Focus List stocks in the LATAM region remains at 11. Alsea (ALE.MX; ALSEA*:MM) is actionable.
  • Stocks of Interest: EcoRodovias (EON.BR; ECOR3:BZ), Marfrig (MFA.BR; MRFG3:BZ), Cury Construtora (CCE.BR; CURY3:BZ), Arca (ARC.MX; AC*:MM), Qualitas (QCC.MX; Q*:MM) and Regional (GFR.MX; RA:MM).

O’Neil Health Care Weekly

Posted on by Romeo Alvarez

Software (IGV): The software benchmark rose 1.2% last week and is at its 52-week high. However, the index remains extended in the short term. Support is at its rising 10- and 21-DMA. Quantitative metrics are constructive, with Up/Down Volume ratio above 1 and a high RS Rating of 90. RS line also remains in a broader uptrend. Despite constructive quantitative metrics, multiple constituents – CRWD, NOW, NTNX, PANW, and ZS – are extended and we recommend that investors trim positions on a high-volume breach of the 21-DMA. Of the 11 software groups, five are in the top 50 of the 197 O’Neil groups. Overall, seven groups showed an improvement in Group Rank over the last four weeks, led by Software-Spec Enterprises. Computer Software-Gaming and Computer Software Database showed a decline in Group Rank over the same period. Key earnings this week include MSFT and MANH reporting on Tuesday (1/30), and TEAM and Dassault (DASTY) reporting on Wednesday (2/1). Overall, we remain constructive on the IGV and its constituents.

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 2.6% last week. The Brazilian market was shifted to a Downtrend as it broke below the 50-DMA. We recommend clients avoid adding risk in Brazilian equities.
  • Mexico’s main benchmark declined 0.3% last week. It remains in an Uptrend Under Pressure as it tests support at the 50-DMA. We recommend clients selectively add risk in Mexican equities.
  • Last week, we removed Fleury (FLE.BR; FLRY3:BZ) from the Focus List, reducing the total number of Focus List stocks in the LATAM region to 11. Mercadolibre (MELI) is actionable.
  • Stocks of Interest: XP (XPB.BR; XPBR31:BZ), Cyrela (3CY.BR; CYRE3:BZ), Fomento Economico Mexicano (FMU.MX; FEMSAUBD:MM), Arca (ARC.MX; AC*:MM) and Qualitas (QCC.MX; Q*:MM). Additional names are listed on page 3.

O’Neil TMT Weekly

Posted on by Romeo Alvarez

Software (IGV): The software benchmark rose 2.4% last week and is at fresh 52-week highs. The index is ~7% below its all-time high from 2021. Support is at its rising 10- and 21-DMA. 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 50 of the 197 O’Neil groups. Overall, six groups showed an improvement in Group Rank over the last four weeks, led by Computer-Tech Services. Computer Software-Gaming and Computer Software-Database showed a decline in Group Rank over the same period. Key earnings this week include IBM, SAP, and NOW, all reporting on Wednesday (01/24). Overall, we remain constructive on the IGV and its constituents.

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 0.8% last week. The Brazilian market was shifted to an Uptrend Under Pressure with six distribution days. We recommend clients selectively add risk in Brazilian equities.
  • Mexico’s main benchmark declined 1.0% last week. It remains in a Confirmed Uptrend with five distribution days. We recommend clients add risk in Mexican equities.
  • We added Nu Holdings (NU) to the Focus List, taking the total number of buy recommendations in the LATAM region to 12. Mercadolibre (MELI) and Coca Cola Femsa (KFBL.MX; KOFUBL:MM) are actionable.
  • Stocks of Interest: XP (XPB.BR; XPBR31:BZ), Iguatemi (IG9.BR; IGTI11:BZ), Neoenergia (3GN.BR; NEOE3:BZ), Cyrela (3CY.BR; CYRE3:BZ), Regional (GFR.MX; RA:MM) and Arca Continental (ARC.MX; AC*:MM).

O’Neil TMT Weekly

Posted on by Romeo Alvarez

Software (IGV): The software benchmark rose 5.7% last week and is testing resistance at its 52-week high. Support is at its rising
10- and 21-DMA ($401/399). Quantitative metrics continue to remain constructive. Up/Down Volume ratio rose to 1.6 and A/D Rating
increased to 24. RS Rating improved to 89, although RS line remains below its early-December highs. Five software groups are in the
top 50 of the 197 O’Neil groups. Within this, Computer-Tech Services and Computer Software-Enterprise showed the most
improvement in Group Rank over the preceding four weeks. Notably, Computer Software-Database and Computer Software-Gaming
showed the largest decline in Group Rank over the same period. Monitor weak stocks in these groups. Cybersecurity names continue
to outperform. Within our Focus List, PANW and CRWD rose ~15% last week. Outside the list, FTNT, ZS, and S rose 7–10%. Within
enterprise software, CRM, WDAY, and NOW gained ~7–8%. Overall, we remain positive on the IGV and its constituents. Look for
support at its rising short-term averages to hold on pullbacks. Strong support is at its rising 50-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 declined 1.6% last week and found support near the 21-DMA. It remains in a Confirmed Uptrend with five distribution days. We recommend clients add risk in Brazilian equities.
  • Mexico’s benchmark index declined 2.1% last week and undercut support at the 21-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 remains at 11: Oncoclinicas (ODB.BR; ONCO3:BZ) and Banorte (GTB.MX; GFNORTEO:MM) are actionable.
  • Stocks of interest: Cielo (VIS.BR; CIEL3:BZ), Iguatemi (IG9.BR; IGTI11:BZ), Raia Drogasil (DR3.BR; RADL3:BZ), Regional (GFR.MX; RA:MM), Genterra (CSV.MX; GENTERA*:MM), Aguas Andinas (EMO.CL; AGUAS/A:CI) and Arca Continental (ARC.MX; AC*:MM).