Latin Equities: Weak Monthly Close Calls For Caution

In last Friday's Latin America Daily Financial Alert (October 30) we highlighted that many equity markets across the region are looking overdone and could be facing a near-term correction. We expressed our preference to remain neutral, after taking profit on our long Brazilian stocks position, and would be looking for a strong monthly close for signs that equities may have further room on the upside. However, the monthly closes across most Latin equity indices disappointed, and in fact, on a monthly candle stick chart look particularly weak.

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