Cabrera Capital Daily Game Plan

Tuesday March 16, 2021                                                        Trading
Desk: (312) 236-8907

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

DATA/HEADLINES   
8:30ET Retail Sales; 9:15ET Industrial Production; 10:00ET NAHB Home Builders Index, Business Inventories; 1:00ET $24 billion 20-year bond auction

The Fed kicks off its two-day FOMC meeting today

TODAY’S HIGHLIGHTS:   

• European health ministers will discuss the future of AstraZeneca’s Covid-19 vaccine today
• Huawei will start charging companies like Apple and Samsung royalties for access to its 5G patents
• North Korea tells US administration to cease war games if wants to 'sleep in peace'
• BIDEN BELIEVES CORPORATIONS THAT DID WELL SHOULD PAY MORE: AIDE
  

World stocks rose as investors anticipated the slew of central banks meeting this week will keep policies accommodative to help drive a global
economic recovery.  With the global economy increasingly on a path forward from the pandemic, focus turns to communications from the FOMC tomorrow, which will include fresh economic and interest-rate projections. German investor confidence improved after the
government laid out a path toward ending lockdowns with the March ZEW survey better than expected at 76.6, beating consensus of 74. Unusually strongly worded comments from China’s President Xi suggest Beijing is preparing to amplify a campaign to curb the
influence of its largest and most powerful technology corporations. Vaccine-related stocks were in focus as 13 countries in the European Union have made the decision to halt AstraZeneca’s vaccine. However, Europe’s health regulator insisted that the “benefits
of the AstraZeneca vaccine outweigh the risks of side effects.”    

EQUITIES: 
 Crowdstrike Holdings, Lennar Corp. and Designer Brands are among the companies reporting results  

US equity futures fluctuated, with tech heavy Nasdaq outperforming, following a record close in the S&P 500 amid growing optimism over the budding
economic recovery and progress on vaccines. The Dow Jones Industrial Average also closed at a record and finished up for a seventh session in a row.  Meanwhile, investors are assessing the potential for an infrastructure spending package and tax increases
in the US.  Investors now are looking ahead to tomorrow's Fed statement. Analysts believe if Fed Chair Powell does not push back against current yield levels, investors are likely to take yields higher as better data arrives. Fed policymakers are expected
to forecast that the US economy will grow this year by the fastest rate in decades.      

E-mini S&P futures +0.1%, Nasdaq -0.5%, Russell 2000 futures -0.3%, Dow futures are flat.  The Advance/Decline Line continues to be a positive
for the overall market tone.

The consumer discretionary sector was among the leaders yesterday.  XLY held its 200 day moving average support on March 5^th. 

AMC Entertainment surged 25.8% yesterday
as the company reopens theaters in California and New York, key markets for the cinema group.  AMC Theatres said it’s preparing
to resume operations at nearly all 56 California AMC locations on March 19, with two flagship locations in Los Angeles to reopen on March 15.

European stocks rose as investors looked past turmoil in vaccine rollouts toward the prospects for economic recovery. The Stoxx 600 Index climbed
0.5% as traders appeared to shrug off decisions by Germany, France and Italy to suspend the AstraZeneca vaccine. AstraZeneca contributed the most to the index gain, increasing over 3%.  European health ministers plan to discuss the future of the Covid-19 shot
today, ahead of the latest findings by the European Medicines Agency. Carmaker Volkswagen and online fashion retailer Zalando jumped following upbeat earnings forecasts. Volkswagen gained over 8% after saying it is stepping up efforts to unseat Tesla as the
dominant electric-car maker with a plan to build six battery factories in Europe and invest globally in charging stations. Britain’s FTSE 100 index rose 0.55%, Germany’s DAX 0.6%, France’s CAC 40 0.2% and Italy’s FTSE MIB index 0.65%. Auto sector +2.4%, Financial
sector +1.2%, Retail +1%, while Basic Resources and Energy sectors are lagging, down 0.5%.

A rally in the technology sector boosted Asian stocks higher, following a rebound in the US. Internet giants Meituan and Xiaomi were among the
biggest contributors to the MSCI Asia Pacific Index, while healthcare stocks gained the most as a group.  The rotation into economically sensitive firms took a pause, with Hong Kong insurer AIA Group and Japanese automaker Toyota Motor being the big drags.
Chinese stocks whipsawed between gains and losses but ended as Asia’s best-performing market. The gains were relatively modest in China, where investors were watching for a possible broader crackdown on the internet sector. President Xi warned that China will
step up oversight and go after “platform” companies that have amassed data and market power, a sign that the months-long crackdown on the country’s internet sector is only just beginning. Stock gauges in Australia, South Korea, Hong Kong and Japan rose more
than 0.5%. The Shanghai Composite rose 0.78%.

FIXED INCOME: 
                                       

Treasury yields were steady ahead of the Federal Reserve’s policy statement  tomorrow. Futures are off session highs reached during Asia session,
led by rally in Australia bonds. Treasury supply is in focus as dealers prepare to underwrite a $24b 20-year bond auction today. China's holdings of Treasuries rose by $22.9 billion in January, the highest since October 2019. Japan's holdings rose to the highest
since August and it remained the largest holder. 30 year yield continues to hold key Fibonacci retracement resistance. TLT is holding key support at its
200 week moving average.

METALS: 

European stocks rose as investors looked past turmoil in vaccine rollouts toward the prospects for economic recovery. The Stoxx 600 Index climbed
0.4% as traders appeared to shrug off decisions by Germany, France and Italy to suspend the AstraZeneca vaccine. AstraZeneca contributed the most to the index gain, increasing over 3%.  European health ministers plan to discuss the future of the Covid-19 shot
today, ahead of the latest findings by the European Medicines Agency. Carmaker Volkswagen and online fashion retailer Zalando jumped following upbeat earnings forecasts. Volkswagen gained over 8% after saying it is stepping up efforts to unseat Tesla as the
dominant electric-car maker with a plan to build six battery factories in Europe and invest globally in charging stations. Britain’s FTSE 100 index rose 0.55%, Germany’s DAX 0.6%, France’s CAC 40 0.2% and Italy’s FTSE MIB index 0.65%. Auto sector +2.4%, Financial
sector +1.2%, Retail +1%, while Basic Resources and Energy sectors are lagging, down 0.5%.

ENERGY:  

Oil slid for a third day on signs of near-term oversupply.  The flood of Iranian crude gushing into China may be OPEC+'s next concern. The country
is buying almost 1 million barrels a day, leaving supply from other nations struggling to find buyers. rising stockpiles in the United States added to the risks of a demand recovery after countries including Germany and France halted COVID-19 vaccinations. 
The American Petroleum Institute will report crude stock pile levels later today.

CURRENCIES:  

The US dollar erased earlier gains, with caution evident ahead of the central bank meetings. The pound slid to lead G-10 losses against the dollar
following new legal action from the European Union against the UK over Brexit. Traders also digested comments from Governor Andrew Bailey that the Bank of England might not push back against higher bond yields at its meeting Thursday.  The Australian dollar,
which is seen as a liquid proxy for risk, was down 0.2%, after the Reserve Bank of Australia highlighted the importance of stronger wages growth before considering any rise in interest rates.

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

• ENZ +29.1% (+$0.86); Enzo Biochem Gains as Second Quarter Sales Climb, CEO Departure
• ISUN +25% (+$3.29); iSun Reports Fourth Quarter Results
• ANVS +23.8% (+$8.10); Annovis Bio Announces Positive Phase 2 Data – Interim Data
• ICAD +16.9% (+$3.17); iCAD Announces FDA Clearance for ProFound AI Version 3.0 for 3D Mammography
• AZRX +16.2% (+$0.25); AzurRx BioPharma Announces Completion of Enrollment in Phase 2b OPTION 2 Clinical Trial of MS1819 in Cystic Fibrosis
• KMPH +15.5% (+$1.85)
• FTCV +14.7% (+$1.57); Fintech Acquisition Corp V Jumps Premarket on eToro Report
• XNET +13.7% (+$1.06)
• ADPT +11.6% (+$4.98)
• NBEV +10.7% (+$0.32); NewAge Jumps After Quarter Revenue Beats Highest Estimate
• SNDL +9.6% (+$0.15)
• EPZM +9% (+$0.81)
• ZOM +7.6% (+$0.19); Zomedica Rises on First Commercial Sale of Truforma Platform
• FLGT +7.4% (+$7.73)
• PSAC +5.9% (+$0.79)
• FUTU +5.8% (+$8.63); Alibaba-Backed Robo Adviser Seeks to Tame China Day Traders (1)
• IMUX +5.8% (+$0.94); Immunic Inc’s Muehler Buys Over $150,000 of Shares
• CCIV +5.4% (+$1.55)
• BILI +5.3% (+$5.89); Bilibili Submits Updated Listing Documents With HKEX

Decliners

• OCG -23% (-$2.14); Oriental Culture Holding Rises 120%: Chinese U.S. Listings
• CLSK -23% (-$6.75); Cleanspark Shares Fall 22% Premarket After $200m Placing
• ZYNE -14.5% (-$1.02)
• MOR -11.4% (-$2.88)
• SLDB -8.5% (-$0.81); Solid Biosciences Registers 24.3m Shares for Selling Holders
• OPCH -7.8% (-$1.67); Option Care Health Offering by Holder Prices at $20/Share
• GME -7.6% (-$16.6); GameStop Roller-Coaster Hits Bump as Trading Volume Dries Up (1)
• ZKIN -6.9% (-$0.60)
• GMRE -5.8% (-$0.85); Global Medical Falls Postmarket After Offering 7.5m Shares
• ACRE -5.1% (-$0.76); Ares Commercial Real Estate Corporation Prices Offering of Stock
• FCEL -4.6% (-$0.79); FuelCell 1Q Revenue Misses Estimates
• RUBY -4.6% (-$1.39); Rubius Offers $150m of Shares After Stock Surges on Cancer Data
• KOSS -4.5% (-$1.29)
• EBON -4.2% (-$0.47)
• VUZI -4.1% (-$0.92)

David Wienke

Cabrera Capital Markets, LLC