By Tim Seymour
Mexico, one of the most defensive and best-performing markets in the world over the past 12-month period, has given up some ground today, breaking the 50-day moving average for the first time in months.
Where will the Latin America money go? While it's not time for panic because of this technical development, leadership in Mexico may be tough to find with America Movil (AMX) down -9% today and leaving may investors angry with head honcho Carlos Slim.
Mexican earnings have been disappointing to say the least, and there is little room for disappointment with valuations full. Walmex (OTCQX:WMMVY) is the next big name ready to report next week, and we think the bar is high at 32x current P/E and 17.4x EBITDA. Watch the Mexican peso for a break of 12.75 to stay clear of Mexico for a bigger pullback.