Cabrera Capital Daily Game Plan

Wednesday December 9, 2020                                                        Trading
Desk: (312) 236-8907

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

DATA/HEADLINES:  10:00ET
JOLTS Job Openings, Wholesale Inventories, Bank of Canada Rate Decision; 1:00ET $38 billion 10-year notes reopening

TODAY’S HIGHLIGHTS: 

• Elderly patients in UK get turned away from vaccinations of Pfizer vaccine because they have history of allergies – NBC News
• China's Sinopharm vaccine has 86% efficacy
  
• Hungary Confirms Deal With Poland, Germany On EU Budget  
• JPMorgan actively looks for deals
  
• Jeffrey Gundlach sees US inflation accelerating to between 2.25% and 2.4% next year
• Robinhood hired Goldman to lead preparations for an IPO
  
• Passengers are stuck on a Singapore cruise ship after a Covid case was found
  
• India’s health secretary said the country may approve some coronavirus vaccines over the next few weeks and estimated 300 million people would be inoculated
  in the first tranche

Global stocks climbed toward another record high as hopes for a US stimulus deal overshadowed fears about resurgent coronavirus cases. Global
equities were energized by the White House’s surprise re-entry into pandemic-relief talks with a $916 billion proposal. Mining and chemical firms led gains among cyclical shares in Europe, after equities rose across much the Asia Pacific. The EU and UK have
agreed to a trusted trader scheme that would mean exemptions from tariffs for up to 98% of goods flowing between Great Britain and Northern Ireland from January 1. On the virus front, people with a significant history of allergies should not receive the Pfizer
and BioNTech vaccine, the UK said, after two people experienced reactions.

EQUITIES: 
 DoorDash is making its trading debut today after raising $3.37 billion in an initial public offering with Airbnb’s IPO set
to follow within hours.   Fear and Greed Index is only at 74 after a high near 90 a week ago.

US equity index futures trade off overnight highs, but remain in small positive territory. The S&P 500 closed at an all-time high after Senate
Majority Leader Mitch McConnell suggested setting aside some issues that have been roadblocks to a relief package. The Nasdaq 100 is slightly lower after advancing for a 10th straight day, the longest rally in about a year.  Steven Mnuchin made a surprise
re-entry into stimulus talks, opening a potential path to a year-end deal. Nancy Pelosi and Chuck Schumer called it progress but said omission of supplementary jobless benefits was unacceptable. The plan includes $600 stimulus checks in place of the bipartisan
proposal's temporary supplementary unemployment aid. More than 40 attorneys general and the US government are preparing to file antitrust lawsuits against Facebook today. They allege it engaged in unlawful, anti-competitive tactics to buy or kill off its rivals
and solidify its dominance in social networking.

December E-mini S&P futures +0.1%, Nasdaq -0.1%, Russell 2000 futures +0.6%, Dow futures +0.25%. 

Small caps continue to outperform as the indices make all time highs and we are targeting the .618 retracement in IWM vs SPY.

Pfizer jumped more than 3% yesterday as US regulators gave early indications they may grant emergency-use authorization to its vaccine.

European shares hit February highs, joining a global rally on optimism around progress in COVID-19 vaccines and a US stimulus package, while
all eyes turned to make-or-break Brexit talks. The Stoxx Europe 600 climbed 0.6%, with travel & leisure, automakers, and banks rising the most among sectors.  Almost every industry sector is in the green, except for technology, dragged down by a slide in chipmaker
STMicroelectronics (-9%) after unexpectedly cutting operating margin estimates on US-China tensions. Germany’s DAX jumped as much as 1.3% to a three-month peak. On the EU stimulus front, Poland and Hungary agreed on a compromise with Germany to unblock the
EU's $2.2 trillion budget and stimulus plan. The UK said it will drop the tariffs the EU imposed on the US as part of the Airbus-Boeing conflict, when it completes its split from the bloc at the end of the year.

Equity benchmarks in South Korea and Japan were the top gainers amid a broad Asia rally on signs of progress in US stimulus talks. The Kospi
climbed 2% following its first decline in six sessions on Tuesday. Japan’s Nikkei rose 1.3% to its highest close since April 1991, after machinery orders jumped in October at the fastest pace in more than a decade. SoftBank surged 5.5%, to a 20-year high following
a report that the company is considering buying back shares to boost Chief Executive Officer Masayoshi Son’s stake.  Australian shares extended gains for a seventh straight session (+0.6%) and Indian shares jumped 1.1% to a record high, led by gains in Reliance
Industries and HDFC Bank.  Stocks in China bucked the trend, with the Shanghai Composite Index dropping more than 1%, as at least three Chinese firms announced equity sale plans. China’s consumer prices fell in November for the first time in more than a decade.

FIXED INCOME: 
 

Treasuries hold losses into early US session, with yields cheaper by more than 2bp across the long end of the curve as US stimulus talks show
signs of progress.  The Treasury will auction $38 billion of long-term notes today. The latest flattening of the yield curve suggests some market participants may be putting on positions with expectations that the Fed delivers next week on tweaks to its bond
purchases, BMO said.

METALS: 

Gold declined from a two-week high after the short-covering rally ran out of gas as positive coronavirus vaccine developments are driving investors
into higher-risk assets. Gold investors are looking forward to the US Federal Reserve policy meeting next week for clues on the direction of monetary policy.

ENERGY:  

Oil fluctuated as investors weighed militants attacking two small wells in Iraq's Kirkuk area and a jump in US fuel stockpiles. Crude’s gains
were also aided by a rally in global stock markets on hopes for further US stimulus support.  The American Petroleum Institute reported a 6.44 million barrel increase in gasoline inventories, which would be the biggest since April if confirmed by official
figures due today.

CURRENCIES:  

The pound rallied after three days of losses as UK Prime Minister Boris Johnson travels to Brussels for dinner with the European Commission President
to save Brexit trade negotiations. While official statements from both camps point to hopes of reaching a deal, significant differences remain on key issues. The dollar index drifts sideways at fresh lows for the week, as progress in combating the COVID-19
pandemic boosted risk appetite and prospects of more US fiscal stimulus weakened the currency. Riskier currencies, including the Australian dollar (+0.85%) and the Chinese yuan, led gains.  Central bank intervention should remain a key theme in the coming
months as policy makers seek to contain the impact of continued downward pressure on the dollar. Rumblings in the money markets grew with swap markets indicating a growing demand for dollars heading into the end of the year.

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

• RCKT +32.7% (+$10.5); Rocket Pharma Says Study Has Positive Prelim. Data; Shares Rise
• QS +29.8% (+$17.2); QuantumScape Surges in Pre-Market in Second Day of Gains
• PIC +18% (+$2.83)
• CATM +15.5% (+$4.01); Hudson Executive Files 13D/A on Cardtronics; Updates Item 4
• RMG +14.9% (+$2.74)
• SRNE +12.7% (+$1); Sorrento Gets California Licensure for Covid Sample Testing
• LOVE +12.4% (+$4.19); Lovesac 3Q Adjusted Ebitda Beats Estimates
• THCB +12.4% (+$1.58)
• CRIS +12.2% (+$0.80); Curis Said to Offer $65m Shares at $5.50-6/Share
• OMCL +11.5% (+$12.6); Omnicell Target Raised at Benchmark on Gain With or Without Deal
• VSPR +10.6% (+$1.10)
• DMYD +8.5% (+$0.99)
• INFI +7.9% (+$0.22)
• TTCF +7.8% (+$1.31)
• EH +7.7% (+$1.72)
• HCHC +6.5% (+$0.23); HC2 Chairman Glazer Buys $1.19 Million of Shares
• CVAC +6.5% (+$8.45); CureVac Signs Vaccine Fill & Finish Manufacturing Pact
• OAC +6.1% (+$0.72)

Decliners

• PSTI -41.3% (-$4.73); Pluristem Falls as Limb Study Unlikely to Meet Primary End Point
• PLAB -16.7% (-$2.21); Photronics 1Q EPS Forecast Misses Estimates
• GME -15.6% (-$2.64); GameStop Falls on 3Q Sales Miss; CEO Sees Sales Growth in 4Q
• TALO -15.4% (-$1.62); Talos Offering Prices 8.25m Shares for $73.4m
• UNFI -13.6% (-$2.56); United Natural 1Q Adjusted EPS Misses Estimates
• CLXT -11% (-$0.40)
• STM -10.2% (-$4.24)
• HOOK -9.8% (-$1.33); Hookipa Pharma to Offer Shares Said at $11.75-12.25/Share
• FEYE -9.7% (-$1.51); FireEye Hack Hurts Reputation, Earnings Hit Unclear: Street Wrap
• BRP -8.8% (-$2.81); BRP Group to Buy Burnham Benefits Insurance Services, INC
• TCDA -8.5% (-$0.69); Tricida Revised VALOR-CKD Trial Protocol, Gives Financial Update
• IGMS -8.3% (-$9.55); IGM Biosciences Offering Prices at $90/Share
• CVM -8.2% (-$1.26)
• GRWG -6.4% (-$2.17); GrowGeneration Offering Prices 5m Shares at $30/Share
• PERI -5.7% (-$0.64)
• ATRA -5.3% (-$1.38); Atara Bio Offering Prices 5.1m Shares at $24.50/Share
• KODK -4.9% (-$0.55)
• AY -4.3% (-$1.51); Atlantica Sustainable Said to Offer Shrs at $32.65-33.65/Shr
• VLRS -4.2% (-$0.50)
• DRD -4% (-$0.44)
• BE -3.9% (-$1.19); Bloom Energy Cut to Neutral at JPMorgan; PT $26

David Wienke

Cabrera Capital Markets, LLC