Commentary: The crypto market remains in an uptrend. GBTC is trading above all major moving averages, including the 200-DMA and 50-DMA. Next resistance is at its December 2024 high of $86.11 (5% away). GBTC has a strong RS Rating of 94 and is forming a consolidation base. We recommend adding risk in Bitcoin and the crypto ecosystem.
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 index gained 1% last week and continued to trade above all key moving averages. The index is 1% off its 52-week high and remains in a Confirmed Uptrend. We recommend investors to add risk in Brazilian equities.
- Mexico’s main benchmark rose 1.3% last week and is trading 3% off highs. The index remains in a Confirmed Uptrend. We recommend investors add risk in Mexican equities.
- Last week, we added Embraer (EA3.BR; EMBR3 BZ) to the Focus List after the stock retook its 50-DMA. The total number of Focus List stocks in the LATAM region is four.
- Stocks of interest: Lojas Renner (LE3.BR; LREN3 BZ), Inter & Co. (IP9.BR; INBR32 BZ), Rede Dor Sao Luiz (RD2.BR; RDOR3 BZ), Grupo Aeroportuario del Pacifico (GAP.MX; GAPB MM), Gentera (CSV.MX; GENTERA*MM) and Qualitas (QCC.MX; Q* MM
O’Neil TMT Weekly
Software (IGV): The software benchmark is consolidating after regaining all moving averages and is forming the right side of a stage-one
cup base. The IGV is 10% off highs, with immediate support at its 100-DMA ($97). We continue to see an improvement in quantitative
metrics including Up/Down Volume ratio, which has risen to 1, and numerical Acc/Dist Rating, which remains positive along with a letter
rating of B- and rising RS line. Ideas that are setting up or have regained most of their key moving averages include CVLT, PAYC, PLTR,
and RBRK. Six of the 12 industry groups have shown improvement in the Group Rank over the last four weeks, with Tech Services (#18)
and Credit Card & Payment (#29) showing the sharpest improvement. We recommend that investors focus on ideas with a rising RS line
and that are holding above key moving averages.
O’Neil Global Cryptocurrency Weekly
Cryptocurrency – Technical Overview
Commentary: The crypto market remains in an uptrend. GBTC is up over 6% so far this week and trading above all major moving averages. Next resistance is at its December 2024 high of $86.11 (5% away). GBTC has a strong RS Rating of 94 and is forming a consolidation base. We recommend adding risk in Bitcoin and the crypto ecosystem.
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 0.3% last week and continues to trade above all its key moving averages. The index remains in a Confirmed Uptrend. We recommend investors add risk in Brazilian equities.
- Mexico’s main benchmark index declined 1.6% last week and is trading 4% off its 52-week high. The index remains in a Confirmed Uptrend. We recommend investors add risk in Mexican equities.
- The total number of Focus List stocks in the LATAM region remains at three.
- Stocks of interest: Porto Seguro (PSO.BR; PSSA3 BZ), Banco BTG Pactual (BPC.BR; BPAC11 BZ), Qualitas Controladora (QCC.MX; Q* MM) and Grupo Aeroportuario Del Centro Norte (OMA.MX; OMAB MM). Additional ideas are listed on page 2
O’Neil TMT Weekly
Software (IGV): The software benchmark jumped ~5% higher and regained all moving averages. The 100-DMA ($97) is the first level of
support. We continue to see an improvement in quantitative metrics including numerical Acc/Dist Rating, which has turned positive along
with a letter rating of C+ and rising RS line. Ideas that are setting up or have regained key levels of resistance including CVLT, GWRE,
MSFT, FICO, and DUOL. Eight of the 12 industry groups have shown improvement in Group Rank over the last four weeks, with Financial
(#64) and Tech Services (#29) showing the sharpest improvement. We recommend that investors focus on ideas with a rising RS line and
that are holding above key moving averages.
O’Neil Global Cryptocurrency Weekly
Commentary: The crypto market remains in a Confirmed Uptrend. GBTC is up 1.2% so far this week and is trading above all major moving
averages, including its 50- and 100-DMA. Next resistance is at its December 2024 high of $86.11. GBTC has a strong RS Rating of 93 and is
forming a consolidation base. We recommend a gradual approach to adding risk in Bitcoin and the crypto ecosystem.
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 3.9% last week and staged a follow-through day. The index was upgraded to a Confirmed Uptrend from a Rally Attempt. We recommend investors add risk in Brazilian equities.
- Mexico’s main benchmark rose 7% last week and staged a follow-through day. The index was upgraded to a Confirmed Uptrend from a Rally Attempt. We recommend investors add risk in Mexican equities.
- The total number of Focus List stocks in the LATAM region remains at three. MercadoLibre (MELI) is actionable.
- Stocks of interest: B3 (BMF.BR; B3SA3 BZ), Porto Seguro (PSO.BR; PSSA3 BZ), Totvs (TOT.BR; TORS3 BZ) and Grupo Aeroportuario Del Centro Norte (OMA.MX; OMAB MM).
O’Neil TMT Weekly
Software (IGV): The software benchmark gained ~9% last week. It regained support along its 21-, 50-, and 200-DMA. It is 15% off highs,
with next resistance at its 100-DMA (+4%). Quantitative metrics though improved remain weak, Up/Down Volume ratio is below 1 while
Acc/Dist Rating of has turned positive. Ideas that are actionable or setting up and have regained most of their key moving averages include
CRWD, GWRE, PLTR and ZS. Seven of the 12 industry groups have shown improvement in the Group Rank over the last four weeks, with
Design (#116) and Financial (#83) showing the sharpest improvement. We recommend that investors focus on ideas with a rising RS line
and that are holding above key moving averages, while avoiding ideas that are below key support levels.
O’Neil Global Cryptocurrency Weekly
Cryptocurrency – Technical Overview
Commentary: We are shifting the crypto market to a Confirmed Uptrend after GBTC recorded a follow-through day on April 22. GBTC is up 10% this week and is retaking key moving averages, including the 50- and 100-DMA. Next resistance is at its December 2024 high of $86.11. We recommend a gradual approach to adding risk in the crypto ecosystem. MSTR and HOOD screen the best in the crypto ecosystem
