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 was up 0.6% last week. It remains in a Confirmed Uptrend. We recommend clients add risk in Brazilian equities.
  • Mexico’s main benchmark was up 0.5% last week. It remains in 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. Gruma (GRM.MX; GRUMAB MM) is actionable.
  • Stocks of interest: Banco do Brasil (IO3.BR; BBAS3:BZ), Equatorial (EQO.BR; EQTL3:BZ), Caixa Seguridade (CS6.BR; CXSE3:BZ), Raia Drogasil (DR3.BR; RADL3:BZ), Yduqs (EST.BR; YDUQ3:BZ), Totvs (TOT.BR; TOTS3:BZ), Allos (SSB.BR; ALOS3:BZ), Vesta (VES.MX; VESTA*:MM), Fomento Economico Mexicano (FMU.MX; FEMSAUBD:MM) and Globant (GLOB).

O’Neil TMT Weekly

Posted on by Romeo Alvarez

Software (IGV): The software benchmark rose ~2% last week and is trading in the pivot range of a stage-two flat base. It is
approaching resistance near $383, with support at its rising 10-DMA ($373). Technical profile is strong with an upward sloping RS line
and a strong RS Rating of 92. Up/Down Volume ratio declined to 1.2 w/w, but remains overall constructive

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 rallied 3.5% and hit a new 52-week high last week. It was upgraded to a Confirmed Uptrend as the index recorded a follow-through day on November 14. We recommend clients add risk in Brazilian equities.
  • Mexico’s main benchmark was up 2.8% last week. It remains in a Confirmed Uptrend. We recommend clients add risk in Mexican equities.
  • We added Mercadolibre (MELI) and Gruma (GRM.MX; GRUMAB MM) to the Focus List, taking the total number of LATAM Focus List stocks to six.
  • Stocks of interest: Banco do Brasil (IO3.BR; BBAS3:BZ), Embraer (EA3.BR; EMBR3:BZ), Iguatemi (IG9.BR; IGTI11:BZ), ItauUnibanco (IU4.BR; ITUB4:BZ), Fibra Uno (FUN.MX; FUNO11:MM), Grupo Cementos (GCC.MX; GCC*:MM), Fomento Economico Mexicano (FMU.MX; FEMSAUBD:MM) and Globant (GLOB).

O’Neil TMT Weekly

Posted on by Romeo Alvarez

Software (IGV): The software benchmark rose 2.7% last week and is trading in the pivot range of a stage-two flat base. Support is at
$370, followed by its rising 10-DMA ($365). Technical profile is strong, with an upward sloping RS line and a strong RS Rating of 93.
Up/Down Volume ratio of 1.5 is also constructive.

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 was up 2.0% last week. It remains in a Rally Attempt. We recommend clients wait for a follow-through day to add risk in Brazilian equities.
  • Mexico’s main benchmark was flat last week. It remains in a Confirmed Uptrend. We recommend clients add risk in Mexican equities.
  • The total number of Focus List stocks in the LATAM region remains at four. Banco BTG (BPC.BR; BPAC11:BZ) is actionable.
  • Stocks of interest: Banco do Brasil (IO3.BR; BBAS3:BZ), Inter (IP9.BR; INBR32:BZ), Fleury (FLE.BR; FLRY3:BZ), Allos (SSB.BR; ALOS3:BZ), Vivara (VPO.BR; VIVA3:BZ), Totvs (TOT.BR; TOTS3:BZ), Arca Continental (ARC.MX; AC*:MM), Gruma (GRM.MX; GRUMAB:MM), Banorte (GTB.MX; GFNORTEO:MM), Grupo Cementos (GCC.MX; GCC*:MM), and Fomento Economico Mexicano (FMU.MX; FEMSAUBD:MM).

O’Neil TMT Weekl

Posted on by Romeo Alvarez

Software (IGV): The software benchmark rose more than 4% last week on above average volume. It is forming the right side of a
stage-two 16-week flat base with a pivot of $371.56. Next resistance is at $367 (its September highs), followed by the pivot. Major
support is at $348 (convergence of its 21- and 50-DMA). Strong technical profile: RS line is trending higher with a strong RS Rating of
93. Up/Down Volume ratio declined w/w but remains above 1. Three of the 11 software groups are ranked in the top 10 O’Neil industry
groups – Computer Sftwr-Desktop (#1), Computer Sftwr-Database (#3), and Computer Sftwr-Edu/Media (#5). Top performers within
these groups include MSFT, ADBE, MDB, ORCL, DUOL, and UDMY

O’Neil TMT Weekly

Posted on by Romeo Alvarez

Software (IGV): The software benchmark jumped 6%, regained its 50-DMA, and is on the right side of a 15-week consolidation with a
pivot of $371. Volume on the right side of the base is significantly above average, with positive quantitative metrics including RS Rating
of 92 and A/D Rating of B+. Select large caps are setting up constructively including focus list-rated MSFT, NOW, ADBE, and SNPS
which are all actionable. Other constructive ideas at pivot or setting up include CYBR, NTES, PLTR, and VRNS. A number of ideas
are bouncing but need to regain resistance/key moving average including WDAY, CRM, and SHOP. Conversely, stocks with exposure
to SMBs were under heavy distribution with poor earnings outlook including BILL and HR/Cloud stocks like PAYC, PYCR, and PCTY.
Overall, should the IGV hold above its 50-DMA ($347) support and approach its pivot ($371), look to increase exposure in ideas
breaking out

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 was up 4.3% last week. It was shifted to a Rally Attempt from a Downtrend. We recommend clients wait for a follow-through day to add risk in Brazilian equities.
  • Mexico’s main benchmark rallied 4.7% last week. It was shifted to a Confirmed Uptrend from a Rally Attempt. We recommend clients add risk in Mexican equities.
  • We removed Raia Drogasil (DR3.BR; RADL3:BZ) from the Focus List. The total number of Focus List stocks in the LATAM region is down to four. Petro Rio (HRT.BR; PRIO3:BZ) will be actionable on a strong bounce off the 50-DMA.
  • Stocks of interest: Banco Do Brasil (IO3.BR; BBAS3:BZ), Inter (IP9.BR; INBR32:BZ), CSN Mineracao (CMO.BR; CMIN3:BZ), BRF Brasil Foods (DG3.BR; BRFS3:BZ), Fomento Economico Mexicano (FMU.MX; FEMSAUBD:MM) and Gruma (GRM.MX; GRUMAB:MM).

O’Neil TMT Weekly

Posted on by Romeo Alvarez

Software (IGV): The software benchmark dropped 2.8% on above average volume and is trading below its 50- and 100-DMA. The
IGV is now 11% off highs with the next support at its 200-DMA ($320). Quantitative metrics have deteriorated with its numerical A/D
Rating turning negative for the first time in October, letter A/D Rating of D+, and RS line showing early signs of weakness. Stocks are
pulling back to their key moving averages, including FL-rated names CRM, WDAY, and SPSC, which are now below their 200-DMA.
Post earnings, large-cap software stocks including MSFT, NOW, and IBM are showing relative strength with the IGV still testing key
levels. Remain cautious and focus on stocks holding above or bouncing off key support levels. Reduce exposure to stocks breaching
logical levels. Expect prolonged weakness and deeper correction if the IGV breaks below its 200-DMA. Key earnings this week include
ANSS, NET, FTNT, and TEAM.

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 was up 0.1% last week. The Brazilian market remains in a Downtrend. The next level of support is at the 200-DMA (112K). We recommend clients remain cautious.
  • Mexico’s main benchmark was up 1.5% last week. The Mexican market was shifted to a Rally Attempt as it held above its recent low. We recommend clients remain cautious and 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. None are actionable. 
  • Stocks of interest: Inter (IP9.BR; INBR32:BZ), Banco Do Brasil (IO3.BR; BBAS3:BZ), Ultrapar (U3G.BR; UGPA3:BZ), BRF Brasil Foods (DG3.BR; BRFS3:BZ), Caixa Seguridade (CS6.BR; CXSE3:BZ), Petrobras (POB.BR; PETR4:BZ), Fomento Economico Mexicano (FMU.MX; FEMSAUBD:MM), and Qualitas (QCC.MX; Q*:MM). Additional names are listed on page 3.