Commentary: We maintain a positive view on the crypto market as GBTC continues to trade above the 50-DMA. It is up more than 3% for
the week. Next level of resistance: 21-DMA ($78.04; 1% away). Most crypto-related stocks are extended from proper buy points. We
recommend to accumulate on a bounce off support at the 21-DMA or 50-DMA.
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 declined 1.5% last week as it continues to trade below the 200-DMA. The index remains in a Downtrend. We recommend clients avoid adding risk in Brazilian equities.
- Mexico’s main benchmark declined 0.6% last week as it continues to trade below all its key moving averages. The index was shifted to a Rally Attempt from a Downtrend. We recommend clients wait for a follow-through day before adding risk in Mexican equities.
- The total number of Focus List ideas in the LATAM region remains at four.
- Stocks of interest: Latam Airlines Group (LAN.CL; LTM CI), Suzano (SUZ.BR; SUZB3 BZ) and Aguas Andinas (EMO.CL; AGUAS/A CI). Additional ideas are listed on page 3.
O’Neil TMT Weekly
Software (IGV): The software benchmark has pulled back for the third consecutive week, trading below its 21-DMA ($105). It is
testing support at its rising 50-DMA ($101). The IGV is 8% off highs and quantitative metrics have declined over the past few weeks:
RS line has turned lower, while the numerical Acc/Dist Rating has turned negative to -3, along with a letter rating of C. Majority of
software constituents are consolidating, including leaders – NOW, PLTR, RBRK, SAP – holding above key moving averages while
many quality ideas – FICO, IBM, ORCL, PANW – have pulled back into bases. Despite the consolidation, five of the 12 industry
groups have shown improvement in Group Rank over the last four weeks, with Tech Services (#23) and Medical (#38) showing the
sharpest improvement. We recommend being cautious and reducing exposure in ideas breaking below key support levels
O’Neil Global Cryptocurrency Weekly
Commentary: We maintain a positive view on the crypto market as GBTC continues to trade above its 50-DMA. GBTC has pulled back
nearly 1% this week. Next level of support: 50-DMA ($68.96; 9% lower). A bounce off the 50-DMA could serve as a potential buy point.
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 2% last week and continues to trade below its 200-DMA. The index was shifted to a Downtrend. We recommend clients avoid adding risk in Brazilian equities.
- Mexico’s main benchmark declined 3.9% last week and broke below its 50-DMA. The index was shifted to a Downtrend. We recommend clients avoid adding risk in Mexican equities.
- BBB Foods (TBBB) was removed from the Focus List, taking the total number of Focus List ideas in the LATAM region to only four.
- Stocks of interest: JBS (JBS.BR; JBSS3 BZ), Klabin (KLU.BR; KLBN11 BZ), Grupo Aeroportuario Del Pacifico (GAP.MX; GAPB MM) and Plaza (MAL.CL; MALLPLAZ CI).
O’Neil TMT Weekly
Software (IGV): The software benchmark pulled back 2% on above average volume and is testing support at its rising 50-DMA
($100). Quantitative metrics have declined as the Acc/Dist Rating has turned negative to -3. Only a few ideas are setting up, including
ACN and BRZE while the majority of constituents are pulling back and consolidating. Seven of the 12 industry groups showed
improvement in Group Rank over the last four weeks, with Medical (#45) and Tech Services (#34) showing the sharpest improvement,
followed by Enterprise (#12) and Desktop (#166). We recommend a cautious approach and recommend looking for stocks to find
support and consolidate.
O’Neil Global Cryptocurrency Weekly
Commentary: We maintain a positive view on the crypto market as GBTC continues to trade above its 50-DMA. GBTC has pulled back 5.5%
this week, breaching support at its 21-DMA ($78.19). Next level of support: 50-DMA ($66.94). Many stocks are retreating to key moving
averages, and we expect them to hold these levels. A bounce off the 50-DMA could serve as a potential buy point.
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 1.1% last week after hitting resistance at its declining 50-DMA. The index remains in a Rally Attempt. We recommend clients wait for a follow-through day to add risk in Brazilian equities.
- Mexico’s main benchmark gained 0.5% last week and reclaimed support along its 50-DMA. The index remains in a Rally Attempt. We recommend clients wait for a follow-through day to add risk in Mexican equities.
- Weg (WG3.BR; WEGE3 BZ) was added to the Focus List, taking the total number of buy recommendations in the LATAM region to five.
- Stocks of interest: Genomma Lab (GLI.MX; LABB MM), Grupo Aeroportuario del Pacifico (GAP.MX; GAPB MM), Plaza (MAL.CL; MALLPLAZ CI), and Suzano (SUZ.BR; SUZB3 BZ). Additional ideas are listed on page 3.
O’Neil TMT Weekly
Software (IGV): The software benchmark pulled back ~4% from its all-time high and is testing support at its 21-DMA ($105). Look for
the IGV to consolidate in a sideways range. Next level of support is at the rising 50-DMA ($98.9), which is 7% lower. Quantitative
metrics remained strong: Up/Down Volume ratio above 1 and a positive Acc/Dist Rating of 23 indicate accumulation. Most leading
ideas are extended and pulling back. The constituents that are either setting up or in the actionable range include APPF, IBM, MANH,
MSFT, PANW, and PTC. Nine of the 12 industry groups witnessed improvement in Group Rank over the last four weeks. Medical
(#62) and Tech Services (#33) had the sharpest improvement, followed by Software Enterprise (#14) and Credit Card & Payment
Processors (#28). We recommend a patient approach and allowing extended ideas to consolidate while monitoring new ideas that are
emerging out of bases.
O’Neil Global Cryptocurrency Weekly
Commentary: We continue to have a positive view of the crypto market as GBTC continues to trade above the 21- and 50-DMA. GBTC broke out of a stage-three consolidation base on November 11 and is now trading 21% above the pivot.
The following are the stocks that screen well from the O’Neil lens:
- Breaking out – BTBT, COIN, NVDA
- Setting up – IREN
