Software (IGV): The software benchmark declined ~4% and breached its 50-DMA but remains on the right side of a nine-week
consolidation. The index is testing support at the100-/200-DMA ($83). Quantitative metrics have deteriorated slightly, with a flat RS
line and an Acc/Dist Rating of C+. In line with the major indices, most ideas have pulled back into their bases and are testing support
at their key moving averages. Only a few ideas, including GWRE, IBM, IOT, NOW, NTNX, ORCL, and VEEV, are bucking the
weakness and showing good accumulation while trading on the right side of bases. We recommend a selective approach while
adding positions in ideas that are forming the right side of their bases. Trim ideas that are breaching support at their key moving
averages with a declining RS line.
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.
O’Neil Global Cryptocurrency Weekly
Toncoin is the best performer year-to-date, gaining ~112%.
LATAM Weekly Summary
Key points from this week’s report:
Please refer to the attached PDF for the full report.
Brazil’s Bovespa gained 0.3% last week and continues to trade near all-time highs. The index remains in a Confirmed Uptrend. We recommend clients add risk in Brazilian equities.
Mexico’s benchmark index declined 1.1% last week and undercut the 50-DMA. The index remains in a Rally Attempt. We recommend investors 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 six. Rede Dor Sao Luiz (RD2.BR, RDOR3 BZ) is actionable.
Stocks of interest: Direcional Engenharia (DIR.BR; DIRR3 BZ), Banco Pan (PMP.BR, BPAN4 BZ), Porto Seguro (PSO.BR, PSSA3 BZ), Caixa Seguridade (CS6.BR, CXSE3 BZ) and Bb Seguridade (BBS.BR).
O’Neil TMT Weekly
Software (IGV): The software benchmark is trading tight on the right side of a stage-one cup base and is 2% below a pivot ($88.9).
Quantitative metrics remained constructive, with a positive Acc/Dist Rating of 14 and Up/Down Volume ratio above 1, indicating
money inflow. The majority of ideas are attempting to retake their key moving averages and remain constructive. Standout ideas under
accumulation and trading constructively include APP, ADSK, CYBR, FTNT, IOT, MNDY, NOW, and ORCL. We recommend a
selective approach to ideas forming the right side of their bases. Trim ideas breaching below key moving averages on declining RS
lines.
Select Ideas from Citi’s 2024 TMT Conference
Key points from this report:
- The following select ideas are showing near term relative strength while displaying good O’Neil Fundamental ratings and rankings: PANW, WIX, VRNS, TYL, CYBR, PEGA, ZS, NOW, ONTO, TXN, ANET, NVMI, VZ.
- The following select ideas are showing near term technical weakness with poor O’Neil Ratings and Rankings: IFXX.DE, WDC, GFS.
LATAM Weekly Summary
Key points from this week’s report:
Please refer to the attached PDF for the full report.
- Brazil’s Bovespa index advanced 1.2% last week and is trading only 1% off highs. The index remains in a Confirmed Uptrend. We recommend clients add risk in Brazilian equities.
- Mexico’s benchmark index declined 1.1% last week and is trading 9% off-highs. The index remains below the 200-DMA and in a Rally Attempt. We recommend investors 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 six. Dor Sao Luiz On (RD2.BR, RDOR3 BZ) is actionable.
- Stocks of interest: Banco Pan (PMP.BR, BPAN4 BZ), Porto Seguro (PSO.BR, PSSA3 BZ), and Bb Seguridade (BBS.BR).
O’Neil TMT Weekly
Software (IGV): The software benchmark is forming the right side of a stage-one seven-week flat base and is 3% to pivot ($88.9).
The IGV is above all its key moving averages, with immediate support at its 10-EMA ($85) and 50-DMA ($84). Quantitative metrics
have improved over the last three weeks, with Acc/Dist Rating increasing to 17 from -1. The majority of ideas are attempting to retake
key moving averages after a sharp pull back in July. Ideas that are under accumulation and trading constructively include APP, CYBR,
FTNT, IOT, MNDY, NOW, PLTR, and WIX. Five of the 11 software groups in the O’Neil 197, have improved in Group Rank over the
last four weeks. Edu/Media (#77), Enterprise (#99), and Security (#140) showed the sharpest improvement. We recommend a
selective approach to ideas forming the right side of their bases. Trim ideas breaching key moving average supports on declining RS
lines.
LATAM Weekly Summary
Key points from this week’s report:
Please refer to the attached PDF for the full report.
- Brazil’s Bovespa index rose by 2.6% last week and hit a new 52-week high. The Brazilian market was shifted to a Confirmed Uptrend from a Rally Attempt. We recommend clients add risk in Brazilian equities.
- Mexico’s main benchmark gained 2% last week. It is below the 200-DMA and is trading 8% off-highs. The index remains in a Rally Attempt. We recommend investors wait for a follow-through day to add risk in Mexican equities.
- We added Rede Dor Sao Luiz (RD2.BR, RDOR3 BZ) to the Focus List, taking the total number of Focus List stocks in the Latam region to six.
- Stocks of interest: Petro Rio (HRT.BR, PRIO3 BZ), Vibra Energía (PRB.BR; VBBR3 BZ), Banco Pan (PMP.BR, BPAN4 BZ), Itau Unibanco (IU4.BR; ITUB4 BZ) and Porto Seguro (PSO.BR, PSSA3 BZ).
O’Neil TMT Weekly
Software (IGV): The software benchmark advanced ~3.7% this week and has retaken its 100-DMA ($83) and 50-DMA ($84), which
are now levels of support. The IGV is forming the right side of a stage-one cup base with a pivot of $88.9. Quantitative metrics have
improved over the last two weeks, with Up/Down Volume ratio rising to 1.6 from 1.3 and Acc/Dist rating turning positive to 12 from -15,
indicating money inflow. The majority of ideas are attempting to retake their key moving averages after sharp pull back in July. Ideas
that are under accumulation and trading constructively including CYBR, IBM, MNDY, NOW, PLTR, and FTNT. We recommend a
selective approach to ideas forming the right side of their bases. Trim ideas breaching key moving average supports on declining RS
lines.
LATAM Weekly Summary
Key points from this week’s report:
Please refer to the attached PDF for the full report.
- Brazil’s Bovespa gained 3.8% last week and retook the 200- and 50-DMAs. The index remains in a Rally Attempt. We recommend investors wait for a follow-through day to add risk in Brazilian equities.
- Mexico’s benchmark index gained 1.6% last week and retook the 50-DMA. The index was shifted to a Rally Attempt. We recommend investors 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. Grupo Comercial Chedraui (CHD.MX; CHDRAUIB:MM) and MercadoLibre (MELI) are actionable.
- Stocks of interest: Petro Rio (HRT.BR; PRIO3:BZ), Rumo (P3M.BR; RAIL3:BZ), Arca Continental (ARC.MX; AC*:MM) and Embotelladora Andina (ADB.CL; ANDINAB:CI).
