Cabrera Capital Daily Game Plan

Monday December 7, 2020                                                        Trading
Desk: (312) 236-8907

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

DATA/HEADLINES:     

TODAY’S HIGHLIGHTS: 

• Giuliani in hospital with COVID-19
  
• EU's Barnier 'downbeat' on prospects of Brexit trade deal
  
• Details of a $908 billion relief bill are expected today
  
• Goldman’s asset management arm may move to Florida
• Airbnb plans to boost the price range of its IPO to $56 to $60 apiece, up from $44 to $50
  

Global stocks are generally weaker this morning, with Asian stocks giving up earlier gains.  Sentiment soured on news that the US is preparing
sanctions on some Chinese officials, while any Brexit deal seemed to be collapsing. The US is ready to sanction at least 12 more Chinese officials over their role in the recent disqualification of Hong Kong legislators. Meanwhile, FTSE Russell will remove
eight Chinese firms affected by an executive order issued by Trump.  MSCI’s gauge of developing-nation stocks also edged lower following last week’s almost 4% advance. On the coronavirus front, inoculations begin in the UK tomorrow and the US may start giving
shots Friday if the FDA gives emergency-use approval on Thursday.

EQUITIES: 
 KODK soars 75% after review finds loan process involved no wrongdoing

US Index futures are in the red but off their worst levels. More details on the $908 billion bipartisan stimulus package are expected to be revealed
later today, with one Republican senator backing the proposal saying he is confident Senate Majority Leader McConnell and President Trump will come on board. The FDA meets on Thursday on whether to grant emergency authorization of a shot developed by Pfizer
and BioNTech.

December E-mini S&P futures -0.35%, Nasdaq flat, Russell 2000 futures -0.36%, Dow futures -0.3% 

Small caps outperformed late last week, as IWM vs SPY finished at highest level since March. We continue to look for more upside here, targeting
the .618 retracement.

Value outperformed versus Growth last week and a clean break and settle above the 200 day moving average would likely see upside momentum shift.
 

Semiconductors are getting extended on a monthly basis after rallying over 125% from the March low in SOX index.

European stocks were led lower by retailers, banks, autos as investors watch for whether a deal over Brexit can be reached before the evening
and geopolitical tensions weigh on markets. European equities are clawing back off their opening losses, but Stoxx 600 remains down 0.3%, while the CAC underperforms, down 0.7%. German industrial production rose 3.2% in October, twice as much as economists
predicted and the sixth consecutive gain. The DAX is lower by 0.3%. The FTSE 100 outperforms in the region (+0.5%) as the Pound drops sharply. There was little news of any progress on Brexit negotiations, with the UK and the European Union seemingly still
stuck on the same issues that have dogged the standoff for months. One EU official said “the difficulties persist” over the legal oversight of any trade deal and standards of fair play that the UK needs to meet to be able to export in the EU. Negotiations
may collapse today unless there's a breakthrough in the next few hours, a British official said.  Retail sector -1.7%, Autos -1.4%, Banks -1.3%.

Hong Kong shares led losses in Asia, -1.2%, after FTSE Russell’s decision to remove eight companies from its indexes named in a US order banning
investments in firms controlled by the Chinese military. Industrial & Commercial Bank of China fell 2.4% while China Construction Bank slipped 2% on concerns banks may be added to the US blacklist. The Shanghai Composite Index declined 0.8%. Japanese PM Yoshihide
Suga said he wants to decide on the latest economic stimulus package tomorrow. Japan’s Topix index fell 0.9%.  Indonesia’s stock gauge was the top performer in the region, up 2.1% to reach its highest level since February, as the virus hotspot received the
first batch of Covid-19 vaccine from China’s Sinovac Biotech on Sunday. Indian shares closed at a record high, as consumer goods giants Hindustan Unilever and ITC advanced.  Australia’s ASX 200 gained 0.6% and Korea’s Kospi rose 0.5%. Australian shares hit
a nine-month high as mining stocks hit their highest since April 2011, adding about 10% in the past five days.

FIXED INCOME: 
 

Treasuries are higher as US trading get under way, following bigger gains for gilts facing increased chance of a hard Brexit.  Yields are lower
by more than 3bp across long end, with 10-year around 0.94%. The curve is flatter with 2s10s, 5s30s spreads each tighter by ~2bp. Treasury auction cycle starts Tuesday with record $56b 3-year note, followed by 10 and 30 year reopenings for $38b and $24b over
next two days.

METALS: 

Gold prices fell on overall optimism over this week's coronavirus vaccine rollout in Britain and as the dollar bounced off a multi-year low.
Spot gold is up 0.4%. ETF gold holdings fell nine consecutive days through Thursday, the longest run of declines since Trump's presidential victory in 2016. February gold remains negative short term below the $1855 area.

ENERGY:  

Oil is lower after a fifth straight weekly advance. Oil prices slipped as the positive impact from COVID-19 vaccines and an OPEC+ deal on oil
production cuts was undermined by surging coronavirus cases and heightened tensions between the United States and China. A surge in coronavirus cases globally has forced a series of renewed lockdowns, including strict new measures in California, Germany, and
South Korea.  Adding to pressure was news that Iran has instructed its oil ministry to prepare installations for the production and sale of crude oil at full capacity within three months, state media said on Sunday. WTI has key Fibonacci resistance around
$50, and Brent remains positive above its 200dma.

January Natural Gas has fallen 20% after failing at its
200 day
moving average at the end of November. 2.15-2.35 area is next key technical support.

CURRENCIES:  

The Pound weakened the most in three months, down as much as 1.6% versus the US dollar after the Sun newspaper reported that the UK is ready
to pull out of trade talks “within hours.”  After GBP, NOK and AUD are the worst performers in G-10.  Most emerging-market currencies weakened, halting a four-day winning streak as the prospect of US sanctions on Chinese officials curbed demand for risky assets.
The Mexican peso and Turkish lira led declines as the dollar rebounded following news the US is preparing to penalize at least a dozen more Chinese officials over their role in the recent disqualification of Hong Kong legislators.

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

• KODK +73.6% (+$4.94); Kodak Shares Surge 60% Premarket on Report of Loan Probe Outcome
• HCAC +27.5% (+$3.70)
• ANH +17.4% (+$0.41)
• MTNB +16.5% (+$0.18); Matinas Biopharma in Pact to Test Oral Remdesivir Formulations
• FATE +14.4% (+$8.75); Fate Therapeutics Jumps 7% on Positive Phase 1 FT516 Data
• NGA +14.2% (+$2.03)
• JG +13.8% (+$0.45)
• GHIV +13.1% (+$1.35)
• MFGP +12.3% (+$0.72)
• BFT +12.1% (+$1.28); Foley SPAC To Merge with Paysafe in $9B Enterprise Value Deal
• PERI +11.3% (+$0.87); Perion 4Q Revenue Forecast Beats Estimates
• AFMD +11.2% (+$0.63)
• ATRA +10.6% (+$2.61); Atara Jumps 12% on Bayer T-Cell Therapy Pact for Tumors (1)
• CMRX +9.7% (+$0.35); Chimerix Gets FDA Acceptance of NDA for Brincidofovir
• GSX +9.5% (+$5.79); U.S.-Listed Chinese Stocks to Watch: JD.com, Yum China
• KXIN +9% (+$0.44)
• ATNM +8.9% (+$0.96)
• TRNE +8.7% (+$1.51)
• HYAC +8.3% (+$0.85)
• IPV +8% (+$1)
• SAMA +7.6% (+$0.89)
• GMDA +7.6% (+$0.53)
• SYRS +7.6% (+$0.59)

Decliners

• NNDM -15.5% (-$1.15)
• CAAS -12.1% (-$0.95)
• CNTG -10.2% (-$1.20)
• XPEV -9.7% (-$4.80); China EV Maker XPeng to Sell 40m Shares in Offering: Terms
• DUO -9.2% (-$0.93)
• NSCO -6.9% (-$0.46)
• RIDE -6.6% (-$1.56); Lordstown Falls as S-1 Registration Statement Now Effective (1)
• STPK -6.6% (-$1.12)
• JKS -6.3% (-$3.86); JinkoSolar 4Q Revenue Forecast Misses Estimates
• RIOT -6.1% (-$0.61)
• LAZR -5.4% (-$1.71)
• ENLV -4.6% (-$0.52)
• BCS -4.1% (-$0.33)
• AMCI -4% (-$0.54)
• LI -3.9% (-$1.18)
• NIO -3.8% (-$1.65)
• FNKO -3.7% (-$0.40)
• CEO -3.6% (-$3.53)

David Wienke

Cabrera Capital Markets, LLC