Cabrera Capital Daily Game Plan

Monday March 15, 2021                                                        Trading
Desk: (312) 236-8907

TODAY’S GAME PLAN:  from
the trading desk, this is not research

DATA/HEADLINES   
8:30ET Empire State Index; 4:00ET TIC flows

FOMC policy decision on Wednesday

TODAY’S HIGHLIGHTS:   

• The WHO may release its report on the origins of the virus today
  
• NY mayor Bill de Blasio expects Governor Cuomo to be impeached by state legislators
  
• Marvin Hagler, former middleweight champion, has died at age 66
  
• Biden launching 'Help is Here' tour to promote stimulus package in key states
• China Asks Alibaba to Divest Media Assets (BABA -2%)
  

 Strong data from China and continued optimism over the progress of the economic recovery is seeing global stocks continue their move higher. 
Investors remain preoccupied with rising long-term borrowing costs and their implications for reflation trades and the rotation in the stock market from growth to value shares. Despite the recent rise in US Treasury yields, risk sentiment is remains quite
resilient. The Netherlands joined a list of about 12 places that have moved to suspend use of AstraZeneca's vaccine over concerns about possible side effects. Overall, the latest pandemic data paints a mixed picture. While the US is seeing deaths and infections
drop, on a global scale the number of new cases rose for a third week.   

EQUITIES: 
  

US equity futures are mixed, with investors focused on the strength of the global economic recovery and progress in delivering vaccines. Investors
are also considering the potential impact of higher taxes and how that could hit corporate profits. President Biden is planning the first major federal tax hike since 1993 to help pay for the long-term economic program designed as a follow-up to his pandemic-relief
bill. the planned changes are an opportunity to address what Democrats argue are inequities in the tax system. Advisers are prepping a package that includes repealing bits of the 2017 Trump tax cut, raising the corporate rate to 28%, increasing the income
tax rate on those earning more than $400,000 and a possible hike in capital-gains tax.  US Steel Corp. advanced after saying it expects earnings to improve on the back of strong market conditions.    

E-mini S&P futures +0.1%, Nasdaq -0.05%, Russell 2000 futures -0.3%, Dow futures +0.25%. June E-Mini S&P has key short term resistance around
3950 area.

US airlines rose premarket, following European and Chinese peers, amid hopes for a recovery in air-travel demand. Delta Air Lines: Domestic Demand
Improving Across the Booking Curve. DAL March Daily Cash Sales Up 30% Over February.

Russell 2000 Value ETF (IWN) has 14 Day RSI at very extended levels, not see since April 2008.

European stocks rallied as worries over higher bond yields receded and investors focused on the future reopening of economies from lockdowns. 
Travel companies and automakers led the Stoxx 600 Index to the highest level in a year, about 2% away from its record high. Italian FTSE MIB leads in the region, gaining as much as 1.3%.  Danone, the world’s largest yogurt maker, jumped 5% after announcing
it would replace its chairman. Flutter Entertainment soared 7% after the gaming company said it is mulling options for its US sports betting business. Travel & Leisure +2.6%, Telecoms and Autos +1.3%, Banks and Energy -0.2%.  MIB +0.7%, Stoxx 600 +0.4%, FTSE
100 +0.35%, CAC +0.3% and the DAX +0.15%.

Stocks in Asia were mixed as investors sold technology-related names and bought cyclicals. Economically sensitive firms including Hong Kong insurer
AIA Group and auto giant Toyota Motor were among the biggest boosts to the MSCI Asia Pacific Index. Japan's Topix index closed with a 0.9% gain as optimism around the passage of US stimulus package boosted cyclical stocks.  The Hang Seng Index advanced 0.3%,
driven by Xiaomi, which jumped 7% after a US court blocked the Defense Department from restricting American investment in the Chinese smartphone giant. Revisions to Australia’s benchmark ASX 200 led to big gains for stocks being added, while those being cut
fell. India’s Sensex index ended 0.78% lower, as COVID-19 cases surged again. Philippine stocks fell the most in Asia, with its key equity index dropping 2.6%, amid escalating daily coronavirus infections. Concerns about tightening liquidity weighed on Chinese
shares, with the CSI 300 Index closing down 2.2%, and the Shanghai Composite falling 0.95%. Data showed a surge in factory and retail sector activity in China while aluminum and steel output rose to records as the country splurged on construction.

FIXED INCOME: 
                                       

Treasuries fluctuated with the 10-year yield staying above 1.6%. With investors pricing in a strong economic recovery and Treasury yields rising,
this week's Fed meeting will be closely watched for any hints of an earlier-than-forecast rate increase.  BOE and BOJ decisions are also ahead this week, along with auctions of $24b 20-year Tuesday and $13b 10-year TIPS Thursday, both reopenings. Up to $40
billion in US high grade is expected to come to market this week.

METALS: 

Gold gained as investors weighed concerns over inflation ahead of the Federal Reserve’s meeting this week for guidance on policy responses. Stimulus
bets and vaccine rollouts have spurred optimism for economic growth and stoked inflation worries even as consumer price gains remain capped. In an interview on Sunday, Treasury Secretary Janet Yellen said US inflation risks remain subdued and manageable. 
Spot gold rose 0.3% and silver +0.9%.

ENERGY:  

Oil prices rose, with Brent trading briefly above $70 a barrel, as data showed China’s economic recovery accelerated, boosting the energy demand
outlook at the world’s largest oil importer. Brent reversed those earlier gains of 1.2% to trade little changed on lighter than average volume.  WTI’s nearest time spread flipped into a bearish contango structure, signaling oversupply after crude stockpiles
in the US grew in recent weeks. Petroleos Mexicanos discovered what is expected to be a billion-barrel oil field in Tabasco as it aims to reverse a decade and a half of sinking production.

CURRENCIES:  

The pound fluctuated between modest losses and gains as higher US Treasury yields helped lift the Dollar Index for a second day. Rising bond
yields will continue to dominate investors’ minds this week before a Federal Reserve meeting at which analysts expect policymakers to strike an optimistic tone on the US economy. The dollar has been supported by speculators cutting net short positions to the
lowest since mid-November. The sentiment around the Euro remains fragile with the ECB stepping up PEPP purchases in order to counter rising nominal yields, while the Fed remains calm over rising yields. Meanwhile, more lockdown measures are being announced
across Europe with Germany stating that they are on the verge of another Covid wave.

TECHNICAL LEVELS: 
(futures)    

Colors within the report:
Green
is always the 200 period (day, week). Red is always 21,
Blue = 50,
Brown =
100  *Stars have added importance

Equity movers in early trading, as of 7:35ET:

Advancers

• LKCO +37.7% (+$0.40); Luokung Technology Shares Surge Premarket After Xiaomi Ruling
• RUBY +36.9% (+$6.07); Rubius Shares Soar on Plan for Release of Cancer-Drug Trial Data
• GNMK +29.2% (+$5.40); Roche’s GenMark Acquisition ‘Makes Sense,’ Vontobel Says
• EBON +13.2% (+$1.37); Crypto Stocks Rise After Bitcoin Topped $61,000 Over Weekend
• ANVS +12.4% (+$3.65)
• FORA +12.4% (+$1.54)
• NNOX +11.8% (+$5.18)
• YALA +11.7% (+$2.79)
• AREC +11.5% (+$0.50)
• NGA +11.5% (+$2.03)
• KOSS +10% (+$2.80)
• AMC +9.8% (+$1.09); AMC Entertainment Gains on Plans to Open California Locations
• MITC +9.5% (+$0.95)
• RACA +8.6% (+$1.15)
• BTAI +8.5% (+$4.01); BioXcel Therapeutics Receives FDA Breakthrough Therapy Designation for BXCL501 for the Acute Treatment of Agitation Associated
  with Dementia
• AONE +7.9% (+$0.97)
• BEEM +7.8% (+$3.74)
• NXPI +7.6% (+$14.0); Penn National, Caesars Gain After Being Named to S&P 500
  

Decliners

• ENTX -14.3% (-$0.99)
• SEEL -11.4% (-$0.54)
• TRCH -10.8% (-$0.31)
• EYES -6.6% (-$1)
• RNLX -6.5% (-$2.01); Update on Finalization of MCIT Rule to Provide National Medicare Coverage for FDA Breakthrough Devices and Diagnostics
• LLY -6% (-$12.6); Lilly Slips After Alzheimer’s Drug Results While Biogen Gains
• EXTN -5.9% (-$0.26); Edgewell to Join S&P Smallcap 600
• ANIX -5.3% (-$0.31)
• PDSB -5% (-$0.28)
• SLGG -4.6% (-$0.30)
• DBVT -4.5% (-$0.27)
• AGFY -4.1% (-$0.54)
• DQ -3.4% (-$3.19)
• ATHM -3% (-$2.87); U.S.-Listed Autohome Shares Slide After Hong Kong Debut
• DKNG -2.9% (-$2.05); DraftKings to Offer $1 Billion Convertible Senior Notes
• VIAC -2.4% (-$2.24); ViacomCBS Cut to Underperform at BMO; PT $70

David Wienke

Cabrera Capital Markets, LLC