Cabrera Capital Daily Game Plan

Friday November 27, 2020                                                        Trading
Desk: (312) 236-8907

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

DATA/HEADLINES:   
US stock market closes at 1:00ET and the bond market closes at 2:00ET

TODAY’S HIGHLIGHTS: 

• Walmart will limit the number of customers inside its stores to 20% of usual capacity
  
• The UK approved plans for a separate tech-focused regulator that will be able to impose fines and rein in the dominance of internet giants
• Disney is slashing another 4,000 jobs due to the closure of its theme parks
  
• China imposed anti-dumping tariffs on Australian wine
  
• Suspected North Korean hackers target COVID vaccine maker AstraZeneca
  
• Biogen and Sage Therapeutics Announce Global Collaboration to Develop Potential Breakthrough Therapies in Depression and Movement Disorders. Biogen will
  give Sage $1.525 billion in cash.

Stocks around the world are ending the week on a cautious note as investors assess valuations following a record rise in equities this month
and the enduring pandemic in parts of Europe and the US. Global stocks are on track for the best month on record, up 13%, and that has lifted valuations to near the highest in about 20 years.     

EQUITIES: 
 

US stock index futures edged higher as optimism around an economic rebound next year outweighed concerns around an expected surge in coronavirus
infections during the Thanksgiving holiday. Equity indexes look to extend the November rebound after Thursday’s Thanksgiving break as investors assess valuations after a record-setting rally.  S&P 500 Index is up 11% this month and is on course for its best
month on record. A rotation into sectors such as industrials and financials, deemed to benefit from an economic recovery, has also powered the Dow to record highs and put it on track for its biggest monthly gain since 1987. Both the indexes pulled back on
Wednesday as data showed a stuttering recovery in the labor market, sending investors back to the perceived safety of technology heavyweights.

December E-mini S&P futures +0.3, Nasdaq +0.5%, Russell 2000 futures flat, Dow futures +0.25%. 3639 is initial key in ES to start the day.

The Fear and Greed Index is nearing levels where we have seen pullbacks in equities.

The Dow Jones Transportation Average has rallied 17% from the late October low and 97% from the March low

European shares are mixed, but on course for a fourth consecutive weekly gain. The Stoxx Europe 600 index fluctuated, with Electricite de France
rising over 9% following reports that France and the EU are close to reaching a deal on nuclear regulation. Banco de Sabadell plunged after terminating talks with Banco Bilbao Vizcaya Argentaria.  The index remains on track for its biggest monthly gain ever.
Bank shares outperform after ECB board member Panetta said policy makers are open to allowing some banks to resume paying dividends next year. Travel shares led the declines with a drop of 0.7%. Euro zone economic sentiment fell for the first time in seven
months as a second COVID-19 wave hit the continent. Sentiment in services, the euro zone economy’s biggest sector producing two thirds of gross domestic product, slipped to -17.3 from -12.1.

Most markets in the region were up, with China's Shanghai Composite advancing 1.1% and Japan's Topix rising 0.5%, while Australia's ASX 200 slid
0.5%. In China, data showed profits at industrial enterprises surged at the fastest pace in a single month in almost nine years, a further sign the country’s economic recovery is gathering pace. October profits at Chinese industrial firms rose 28.2% year over
year. Hong Kong stocks ended at a nine-month high, tracking mainland strength. China is imposing anti-dumping duties of more than 100% on Australian wine. The levies take effect tomorrow and range from 107% to 212% as China's foreign ministry said that relations
have taken a "nosedive." The ASX 200 FELL 0.5%. Indian shares ended slightly lower, ahead of the release of data that is likely to show Asia’s third-largest economy entered a recession in the latest quarter. Japan’s Nikkei 225 ended at its highest since April
1991, buoyed by hopes of economic recovery and strong corporate earnings

FIXED INCOME: 
 

Treasuries are higher as US trading resumes following Thursday’s holiday, led by long end on expectations tied to Monday’s month-end index rebalancing.
Yields lower by 0.5bp to 3bp across the curve with long-end-led gains flattening 2s10s and 5s30s by 1bp-1.5bp.

METALS: 

Gold edged lower, heading for a third straight week of losses. Spot gold edged down 0.45%, on path for its worst weekly decline in two months,
as hopes for a virus vaccine and a rebound in economic growth dulled demand for the safe-haven asset. February gold futures remain negative below 1855 area.

ENERGY:  
OPEC meets Monday

Oil retreated amid rising tensions among OPEC+ members ahead of their meeting early next week.  Iraq, the United Arab Emirates and Nigeria have
all vented their frustration with the current deal. The disagreements have led Saudi Arabia and Russia to summon OPEC+ ministers for last-minute informal talks tomorrow to smooth the path towards a deal next week. Both benchmarks are up about 7% over the week
after encouraging news on potential COVID-19 vaccines. Rising Libyan output, however, is contributing to concerns about oversupply in the market.

RBOB is flirting with key Fibonacci resistance and Nat Gas futures have the 200dma as key short term resistance

CURRENCIES:  

The US dollar fell slightly amid thin trading due to the Thanksgiving holiday.  The pound fell 0.25% versus the dollar as
Brexit enters a crucial few days, with UK and EU leaders resuming talks this weekend in an attempt to break the deadlock between the two sides. Fresh talk of a Scottish independence referendum also weighed. Australia’s second-largest state, Victoria, which
was once the country’s COVID-19 hotspot, said today that it has gone 28 days without detecting new infections. The Australian dollar is up 0.1%. The Turkish lira jumped as the central bank announced further policy normalization steps.

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 7:35am ET:

Advancers

• APXT +26.9% (+$2.96)
• GNFT +18.9% (+$0.93)
• THCB +17.4% (+$2)
• VSTM +15.9% (+$0.27)
• PIC +15.3% (+$1.92)
• VGAC +14.6% (+$1.45)
• SFT +14.6% (+$1.31); Shift Technologies’s Foy Buys Over $100,000 of Shares
• JG +13.9% (+$0.44)
• RMG +13.2% (+$1.86)
• IPOB +10.5% (+$2.15)
• SPI +10% (+$1.15)
• TOUR +9.9% (+$0.35)
• LCA +9.9% (+$1.75)
• GIK +9.5% (+$1.05)
• AMCI +8.5% (+$0.89)
• LQDA +8.2% (+$0.24)
• EH +8.1% (+$1.10)
• NNDM +7.5% (+$0.43)
• PLTR +7.2% (+$2.10)

Decliners

• NBAC -18.3% (-$4.07)
• RIOT -15.1% (-$1.07); Riot Blockchain’s SOO Sells Over $970,000 of Shares
• BTBT -14.7% (-$1.07)
• MARA -14.5% (-$0.74); Crypto-Linked Stocks Drop With Bitcoin Decline Hitting Third Day
• YJ -10.1% (-$0.50); Yunji 3Q Revenue 1.07B Yuan Vs. 2.77B Yuan Y/y
• QRTEA -10.1% (-$1.17)
• GEOS -9.3% (-$0.69); AMC Networks to Join S&P Smallcap 600
• CAN -7.2% (-$0.46)
• SI -6% (-$2.08)
• STRT -5.9% (-$2.25)
• EBON -4.7% (-$0.24)
• DPW -4% (-$0.27)
• BCS -3.8% (-$0.29)
• DADA -3.6% (-$2.03)
• CRH -3.5% (-$1.49)
• CIIC -3.4% (-$0.88)

David Wienke

Cabrera Capital Markets, LLC