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 gained 2.6% last week and is only 4% off highs. The index is in a Confirmed Uptrend. We recommend investors add risk in Brazilian equities.
Mexico’s main benchmark rose 0.4% last week and is trading 10% off highs. The index remains in an Uptrend under Pressure. We recommend investors selectively add risk in Mexican equities.
LATAM Focus List Update: The total number of Focus List ideas in the LATAM region remains at two. MercadoLibre (MELI) is actionable.
Stocks of Interest: Cyrela Brazil Realty (3CY.BR; CYRE3 BZ), Itausa Unibanco Holding (IU4.BR; ITUB4 BZ), Banco do Brasil (IO3.BR; BBAS3 BZ), JBS (JBR.BR; JBSS3 BZ), Gentera (CSV.MX; GENTERA*MM) and Compania Cervecerias Unidas (CVZ.CL; CCU CI). Additional ideas are highlighted in page 2.

O’Neil TMT Weekly

Posted on by Romeo Alvarez

Software (IGV): The software benchmark gained ~1.5% last week after declining for four consecutive weeks. The IGV bounced after
holding support near $88 but faces resistance at $93–94, which coincides with the converging 200- and 21-DMA. The quantitative
metrics remain weak as the bounce has been on below average volume, RS line remains flat and Acc/Dist Rating is still negative.
Most constituents are attempting to bounce but face resistance at key price levels or moving averages. Few ideas that are bucking the
trend and holding up well include NTNX and OKTA, which are consolidating above support at their moving averages and near their
respective pivots. We recommend a cautious approach. Wait for the IGV to regain and hold above its 200-DMA for incremental
improvement.

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 3.1% last week and reclaimed all its key moving averages. The index was upgraded to a Confirmed Uptrend from a Rally Attempt. We recommend investors add risk in Brazilian equities.
Mexico’s main benchmark index fell 0.7% last week and is trading 10% off highs. The index remains in an Uptrend under Pressure. We recommend clients selectively add risk in Mexican equities.
LATAM Focus List Update: The total number of Focus List ideas in the LATAM region remains at two. MercadoLibre (MELI) is actionable.
Stocks of Interest: Gentera (CSV.MX; GENTERA* MM), Caixa Seguridade (CS6.BR; CXSE3 BZ), Cyrela (3CY.BR; CYRE3 BZ), ItauUnibanco (IU4.BR; ITUB4 BZ) and Cencosud (CNS.CL; CENCOSUD CI). Additional ideas are highlighted on page 2

O’Neil TMT Weekly

Posted on by Romeo Alvarez

Software (IGV): The software benchmark declined for the fourth consecutive week but is attempting to bounce after finding support
near $88. The IGV is 17% off highs and faces resistance at its 200-DMA ($93). Its quantitative metrics remain weak with its RS line
near recent lows while Acc/Dist Rating remains negative. Majority of constituents are under distribution but are attempting to
consolidate near/bounce-off key moving averages. OKTA is an outlier technically, and is attempting to emerge from a first-stage base.
All 12 software-related industry groups are under distribution. We advise a cautious approach and trimming exposure should ideas
break below key support levels.

O’Neil Global Cryptocurrency Weekly

Posted on by Romeo Alvarez

Commentary: We remain cautious on Bitcoin, given that GBTC is trading below support at its 50- and 100-DMA and is more than 26% off
highs. GBTC is in a Rally Attempt as the index held above its March 10 low for three days. We will wait for a follow-through day before
shifting Bitcoin to a Confirmed Uptrend. On the flip side, we will shift it back to a Downtrend if it undercuts the March 10 lows. Support
level: 200-DMA ($62.35; -2% lower).

LATAM Weekly Summary

Posted on by Romeo Alvarez

Key points:
• Brazil’s Bovespa index gained 1.8% last week. It has immediate resistance at the 200-
DMA and is trading 9% off highs. The index is in a Rally Attempt. We recommend that
investors avoid adding risk in Brazilian equities.
• Mexico’s main benchmark rose 1% last week and is trading 9% off highs. The index
remains in an Uptrend Under Pressure. We recommend that investors selectively add
risk in Mexican equities.
• The total number of Focus List ideas in the LATAM region remains at two.
• Stocks of interest: BB Seguridade (BBS.BR; BBSE3 BZ), Itau Unibanco (IU4.BR; ITUB4 BZ),
Industrias Penoles (PA2.MX; PENOLES MM), Gruma (GRM.MX; GRUMAB MM), Banco
Santander Chile (SAT.CL; BSAN CI), and Banco De Chile (CLE.CL; CHILE CI). Additional
ideas are highlighted on page 3.

O’Neil TMT Weekly

Posted on by Romeo Alvarez

Software (IGV): The software benchmark fell ~4% and declined for the third consecutive week. The IGV is 16% off highs and testing
its 200-DMA ($93). Its quantitative metrics have declined over the last few weeks: RS line has turned lower along with an Acc/Dist
Rating of E. Only a few constituents including IBM, JKHY, VEEV, and ZS are either setting up or in the actionable range. All 12
software-related industry groups are under distribution. We advise a cautious approach and trimming exposure should ideas break
below key support levels.

O’Neil Global Cryptocurrency Weekly

Posted on by Romeo Alvarez

Commentary: We remain cautious on Bitcoin, given that GBTC is trading below support at its 50- and 100-DMA and is more than
18% off highs. We shifted GBTC status to a Rally Attempt from a Downtrend as the index held above its February 28 low for three
days and it is up 6% this week. We will wait for a follow-through day before shifting Bitcoin to a Confirmed Uptrend. Support
level: 200-DMA ($62.31; -13% lower).