Software (IGV): The software benchmark bounced ~4.7% and is just below a pivot ($87) from a stage-one nine-week cup-withhandle base. Quantitative metrics over the last week are constructive, as the Acc/Dist Rating rose to 19 from 3, while the RS line is
attempting to turn higher, indicating money inflow. ORCL (Better than expected revenue guidance), APP, and PLTR (S&P 500
inclusion) gapped higher, while several ideas are setting up including FOUR, MNDY, NOW, and ADSK. Seven of the 11 industry
groups showed improvement in Group Rank over the last four weeks. Gaming (#110) and Medical (#147) 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.
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 index declined by 1% last week and is trading 2% off highs. The index remains in a Confirmed Uptrend. We recommend clients add risk in Brazilian equities.
- Mexico’s benchmark index declined 3.5% last week and made new lows for the year. The index was shifted to a Downtrend from a Rally Attempt. We recommend investors avoid adding 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: Banco Pan (PMP.BR, BPAN4 BZ), BB Seguridade (BBS.BR, BBSE3 BZ), Caixa Seguridade (CS6.BR, CXSE3 BZ), Marcopolo (RL4.BR, POMO4 BZ) and Grupo Aeroportuario Del Pacifico (GAP.MX, GAPB MM).
O’Neil TMT Weekly
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.
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.
