Following last week’s trading a notable change occurred within the NDW International Equity Rankings within DALI as Latin America moved to 3^rd and Europe Developed fell to 4^th (out of six international regions). For European Developed, it marks an “end of an era” of sorts, as the group has fallen out of the top half of the DALI International rankings for the first time since early 2023. European Emerging and Africa Mideast have been the top two ranked international groups since September this year, with Europe Emerging having sustained to number 1 spot since late 2022. The newcomer to the top half of the DALI International rankings, Latin America, makes its appearance for the first time since August 2024. Action over the past week brought the Latin American group from 5^th to 3^rd on notable performance from countries like Columbia, Chile, and Brazil.

As an example of the recent positive performance for the broad Latin region, below is the chart of the iShares S&P 40 Latin America ETF (ILF). On the point and figure trend chart, ILF has maintained a buy signal and a positive trend since April of this year. Action at the end of October brought about a third buy signal at $29.50, while November’s trading brought the ETF to a new multi-year high at $30.50. This clears resistance in the $29 - $30 range that had been in place since mid-2021 and brings the chart to its highest level since early 2020. ILF now possesses its highest fund score since early 2024 at 4.79, and the fund has gained 12% during the last 30-day period and 3.6% in November so far. ILF currently maintains an overbought position near the top of the 10-week trading band, so exposure would be better considered on a pullback to the $29 range with initial support at $27.50.

While it may appear that Latin America’s ascension came solely from weakness within European Developed, this isn’t necessarily this case. Many European Developed countries continue to maintain positive technical pictures, so this isn’t a call to step away from exposure there as much as it is a sign there are more options for diversification in international equities with the improvement of Latin America that has outpaced European equities in the near-term. This rally within Latin America and subsequent rise in rank places an overweight toward emerging market regions within the DALI International Equity rankings.

As the end of the calendar year approaches, so too do discussions regarding any unrealized gains or losses of substance sitting within taxable accounts. It is probably a safe assumption that your clients prefer to pay less in taxes whenever possible, and there are a few simple strategies that can be applied within the portfolio to help in that endeavor. "Tax Loss Harvesting" is among them, and while it is not exactly an advanced accounting strategy, it is an effective way to both offset gains and rid the portfolio of laggard positions before the calendar flips to 2025.

The S&P 500 (SPX) is up more than 16% for the year (through 11/10), so there are fewer stocks deep in the red than in years past. However, there are still 121 low attribute stocks in the S&P 500 that are down more than 10% year-to-date, so those looking to offset gains should be able to find viable tax loss harvesting candidates.

Losses from these positions may be used to offset some of the gains already taken in the calendar year or can be "carried forward" in many cases. The harvesting of losses is a straightforward approach, which can be combined with the practical portfolio review measure of weeding out technically weak holdings. The wash sale regulation says that if you repurchase an asset that you’ve sold for a loss within 30 days, you aren’t allowed to take a deduction for the loss. So, you’ll only want to sell stocks that you believe are unlikely to recover over the short term. After all, if you sell a stock that you’re carrying at a 5% loss and it then rallies 5% over the next month, you’re ultimately worse off, even with the tax deduction. This is one of the reasons why our list includes only technically weak stocks and not every stock that’s in the red for the year. We are not CPAs and this is not tax advice; if you have any questions about wash sale regulations or any other tax implications of this strategy, you should seek advice from a licensed accountant.

Our list of tax loss harvesting candidates is shown below. We wanted to highlight stocks that are widely owned, so we’ve used the S&P 500 as a starting point. Because we only want to sell technically weak stocks, we have filtered our screen to include only stocks that have technical attribute ratings of 0, 1, or 2. From that group, we identified 121 individual names that are down -10% or more on a year-to-date basis (through 11/10). Below the table, we've highlighted a couple of individual names that are ripe for potential loss harvesting. Click here to access the shared watchlist of the Candidates.

Adobe Systems Incorporated (ADBE)

Adobe moved lower last week to break a double bottom, which also moved the stock into a negative trend. This stock has been in a long-term decline since its rally high in early 2024. While we saw a few attempts at technical improvement earlier this year, ADBE was unable to push north of the upper bound of its consolidation range in the $360s. We also see that the stock sits in the bottom half of the unfavored software sector RS matrix and ranks in the bottom decile of the Top 500 Large Cap matrix. The technical picture is negative and deteriorating. While we have seen substantial weakness, the stock is not oversold, allowing current holders the opportunity to exit on this trend violation. Note that earnings are expected on 12/10.

Lululemon Athletica Inc. (LULU)

Lululemon has had a rough year. The stock entered the year on a string of consecutive buy signals and seemed poised to restest all-time highs in the low $500s. By the end of the first quarter, the stock reversed course, giving a string of consecutive sell signals and moving into a negative trend. Fast forward six months and we now see that LULU has been cut in half in 2025 and has lost all its technical attributes. The stock also sits in the bottom quintile of the retailing sector RS matrix and is third to last in the Top 500 Large Cap matrix. The past few weeks have seen LULU consolidate near the middle of its trading band in the $160-170 range, offering an exit opportunity for those that still maintain exposure. Further support can be seen in the $162-160 range, while overhead resistance can be seen at $186.

Daily Option Ideas for November 11, 2025