Hey trader,
Everyone is staring at Nvidia. Everyone is waiting on the Fed.
And everyone is missing the real move.
Massive money is flowing into international funds right now. Latin American stocks have outperformed US markets for 18 straight months.
The long-term charts on some of these names look explosive.
Nobody is talking about it. That is exactly why I am.
I screened 20 of the most liquid Latin American ADRs this week. I found setups that could double from current levels.
I am going to walk you through the names that made the cut, where I am setting my price alerts, and why this region belongs on your radar heading into the best buying opportunity of 2026.
Why Latin America, Why Now
I focus on the strongest stocks in the strongest sectors in the strongest regions. That framework has been pointing outside the US for months.
The iShares Latin America 40 ETF (ILF) is trading near its highs and consolidating. On a monthly chart, this thing could double and barely look overvalued.
Brazil has been strong. Mexico has been strong.
Argentina is pulling back slightly but still trending higher.
Here is what caught my attention when I looked back at my own trade log. Some of my best trades over the last 18 months were internationally oriented.
That was not even intentional. The charts just kept leading me there.
Now add the currency angle. The dollar is firming up short term, but another leg lower later this year would be a massive catalyst for Latin American equities.
A weaker dollar lifts these ADRs mechanically. Local earnings translate into more US dollars on the conversion.
You have not missed this move. We are still very early.
The Two Setups I Like Most
I went through 20 liquid names across Brazil, Mexico, Argentina, Colombia, and Peru. Most were not ready.
Some had already made their moves. A few were too low-priced for my criteria.
Two stood out above the rest.
Cemex (CX) is a Mexican industrial building materials company. This stock is sitting at a multi-year resistance level around $13.70 that dates back to 2008.
Mexico's country ETF (EWW) is already breaking out. If Cemex clears this level, the next target is $26 based on the long-term chart structure.
I set my alert at $13.70. I am watching it closely.
Then there is Vale (VALE), the Brazilian steel giant. This one looks like it is emerging from a long-term bear trend.
It is consolidating near its 2021 highs and the weekly chart looks clean. A break above $17.53 opens a path toward $40.
The common thread across both picks is industrials. Latin America is not going to give you cutting-edge tech plays.
What it gives you is commodities, infrastructure, and industrial growth at valuations that US stocks stopped offering years ago.
A few other names worth monitoring on the watchlist:
- Petrobras (PBR) pays a 7.6% dividend and could rip if oil prices catch a bid. Alert set at $17.70.
- YPF, an Argentine energy play, is building a solid base near $39.79 with room to revisit its former highs.
- Vista Energy (VIST) has one of the cleanest charts in the entire group with a pathway toward $90 over time.
- Pampa (PAM) is forming a nice base and looks ready once the broader market stabilizes.
None of these are buys today. I am leaning on price alerts and letting the market come to me.
We are at the market's beck and call. It is not at ours.
Positioning Matters More Than Opinions
I am sitting in heavy cash right now. Closer to 90% in most accounts.
The only hedge I am holding is long bonds. They have been working.
I believe the Fed will be forced to cut rates sooner than July. April or June are both on the table.
The two-year treasury note is breaking higher. Historically, that has been the tail that wags the Fed dog.
When this market bottoms, the real money will come from being in the right names ahead of the turn. I believe we are weeks away from the best buying opportunity of 2026.
Latin America is one of those places most traders are not even looking at.
Set your alerts. Do the homework now. The market rewards preparation, not reaction
Gianni Di Poce
THEOTrade