Software (IGV): The software benchmark continues to consolidate, currently 6% off its all-time high, and slightly below its 50-DMA ($109).
The next level of support is near ~$107 followed by ~$105. Quantitative metrics continue to weaken, with Up/Down Volume ratio falling
below 1 and the numerical Acc/Dist Rating remaining negative. Although a select group of large-cap leaders — MSFT, ORCL, PLTR, NET
— remain in an uptrend and are still holding above key support levels, a growing number of software constituents, including ADSK, CRM,
HUBS, NOW, and TEAM remain under distribution. Only two of the 12 industry groups have shown improvement in Group Rank over the
last four weeks, with Desktop (#36, LIF) showing the sharpest improvement, followed by Design (#60, U). We recommend investors focus
on ideas with a rising RS line that are holding above key moving averages.
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
Commentary: The crypto market remains in an uptrend. GBTC is up almost 2% so far this week and is trading above its 21-DMA and 50-
DMA. GBTC has a high RS Rating of 91 and an Acc/Dist Rating of B-. Meanwhile, ETHE is up 13% this week and is making year-to-date
highs. We recommend investors add 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 was up 2.6% last week and is attempting to retake support at the 50-DMA. It is trading 4% off its 52-week high. The index remains in a Rally Attempt. We recommend investors wait for a Follow-Through Day, before adding risk in Brazilian equities.
- Mexico’s main benchmark retook its 50-DMA and gained 2.1% last week. It is trading 3% off highs. The index was shifted 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: Cury Construtora (CCE.BR; CURY3 BZ) is breaking out of a flat base and is actionable.
- Stocks of interest: Neoenergia (3GN.BR; NEOE3 BZ), Banco BTG Pactual (BPC.BR; BPAC11 BZ), Embraer (EA3.BR; EMBR3 BZ), Grupo Aeroportuario Del Pacifico (GAP.MX; GAPB MM), Falabella Saci (FAL.CL; FALAB CI) and Banco de Credito e Inversion (CRT.CL; BCI CI). Additional ideas are listed on page 2.
O’Neil TMT Weekly
Software (IGV): The software benchmark is consolidating near its pivot from a stage-one cup-with-handle base. The IGV is 5% off its alltime highs, and is testing support at its rising 50-DMA ($108). Quantitative metrics turned mixed over the last week, with the numerical
Acc/Dist Rating turning negative, while letter Acc/Dist Rating dropped to C. Although a select group of large-cap leaders – MSFT, ORCL,
PLTR, RBLX, and SHOP – continue to trend higher, a growing number of software constituents are under heavy distribution including
AKAM, CRM, DOCU, TEAM, and S . Only 3 of the 12 Industry Groups have shown improvement in Group Rank over the last four weeks,
with Design (#59, CDNS) showing the sharpest improvement, followed by Spec Enterprise (#132, APP) and Desktop (#33, MSFT). We
recommend investors focus on ideas with a rising RS line that are holding above key moving averages.
O’Neil Global Cryptocurrency Weekly
Commentary: The crypto market remains in an uptrend. GBTC is up 3% this week and is trying to retake its 21-DMA ($92.19). Support is at
the 50-DMA ($87.52; -5% away). GBTC has a strong RS Rating of 92 and an Acc/Dist Rating of B. Meanwhile, ETHE is up 14% this week
and is making YTD highs. We recommend investors add 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 declined 0.8% last week and continues to trade below its 50-DMA and 100-DMA. The index is trading 6% off highs, with the next level of support along its 200-DMA (-2% away). The index was shifted to a Rally Attempt from a Downtrend. We recommend investors wait for a follow-through day before adding risk in Brazilian equities.
O’Neil TMT Weekly
Software (IGV): The software benchmark staged a downside reversal, gapped down ~3.6% and breached its 21-DMA ($110). Next level of
support is at its 50-DMA ($107). Quantitative metrics have weakened, with the numerical Acc/Dist Rating turning negative, and a letter
Acc/Dist Rating of D+. Most ideas are pulling back and testing key levels of support with very few ideas at/near pivot points including BSY
and SSNC. Most industry groups have deteriorated in Group Rank over the last four weeks. However, Gaming ( #13, RBLX), Desktop (
#29, MSFT), and Design (#47 , CDNS) remain favorable. We recommend that investors take a cautious approach and trim ideas breaking
below key levels of moving average support.
O’Neil Global Cryptocurrency Weekly
Commentary: The crypto market remains in an uptrend but has six distribution days, with three added in the last 10 sessions. GBTC is
down 1% in early trade, breaking below its 21-DMA ($91.1). To remain constructive, we would like to see no further clustering of distribution
days. Support is at the 50-DMA ($86.9). We recommend booking partial profits in extended names like HOOD and FUTU.
LATAM Weekly Summary
Key points from this week’s report:
Please refer to the attached PDF for the full report.
-
- Brazil’s Bovespa index was flat last week and continues to face resistance along its 100-DMA. It is trading 5% off highs, with the next level of support along its 200-DMA (130K; -3%). The index remains in a Downtrend. We recommend investors avoid adding risk in Brazilian equities.
O’Neil TMT Weekly
Software (IGV): The software benchmark gained ~1% and remains with the pivot range of its stage-one cup-with-handle base. It is at its
all-time high, with next support at its rising 10-DMA ($111). Quantitative metrics remained constructive over the last week, with Acc/Dist
Rating remaining positive and Up/Down Volume ratio at 1. Ideas that are either setting up or in the actionable range include BSY, CNDS,
FTNT, PANW, and VEEV. Four of the 12 industry groups have shown improvement in Group Rank over the last four weeks, with Design
(#94; SNPS) showing the sharpest improvement, followed by Gaming (#11, NTDOY) and Enterprise (#34; SNOW). We recommend that
investors focus on ideas with a rising RS line that are holding above key moving averages.
