Cabrera Capital Daily Game Plan

Thursday December 17, 2020                                                        Trading
Desk: (312) 236-8907

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

DATA/HEADLINES:  
8:30ET Weekly Jobless Claims est. 818k (prior 853k), Housing Starts, Philly Fed Index est. 19.4 (prior 26.3)

TODAY’S HIGHLIGHTS: 

• SENATOR KAINE: AGREEMENT ON STIMULUS HAS ‘BASICALLY’ BEEN REACHED
• Bank of England maintains benchmark interest rate
  
• US airlines closing in on new government assistance package
  
• Bitcoin extended gains after breaking past $20,000 overnight
• EU DIPLOMATIC SOURCES SAYS EU, UK "STILL QUITE FAR APART", IN TUNNEL TALKS ON FISHERIES NOW
  
• The first known allergic reaction to the Pfizer Covid-19 vaccine in the US was reported in Alaska

World stocks hit new highs as risk sentiment gained on hopes of a US fiscal stimulus after the Federal Reserve vowed yesterday to keep pouring
cash in to markets until the US economic recovery is secure. The Swiss National Bank kept its monetary policy on hold, keeping the world’s lowest interest rates and staying ready to launch currency interventions despite being labelled a currency manipulator
by the United States. French President Emmanuel Macron has become the latest world leader to test positive for Covid-19. The pandemic continues to rage across Europe, with Germany reporting its biggest jump ever in new cases this morning.   

EQUITIES: 
 FedEx, Accenture, Navistar, General Mills, Rite Aid, and BlackBerry are among the companies reporting earnings today

US index futures advanced, pointing to another positive trading session.  Congressional leaders continued working out the details of a nearly
$900 billion coronavirus relief plan in anticipation of unveiling it as soon as today. The proposal is said to include $600 in payments for individuals, $300-per-week in supplemental unemployment insurance payments and aid for small businesses as well as roughly
$17 billion for airlines while omitting the state and local government aid. The goal is for a House vote today, but it may slip to tomorrow.

December E-mini S&P futures +0.5%, Nasdaq +0.5%, Russell 2000 futures +0.5%, Dow futures +0.4%. SPX has an initial target at 3732.75 (Fibonacci
extension).  

U.S. airlines are closing in on receiving a four-month extension to a government assistance program that is expected to provide another $17 billion
to fund payroll costs 

European stocks rallied for the fourth straight day as investors anticipate a sharp economic recovery in 2021 backed by wider vaccine rollouts
and ultra-easy monetary policy.  The Stoxx 600 Index was up 0.4%, led higher by basic resources, media and retail shares as authorities were said to be expediting the rollout of a Covid vaccine before Christmas and EU leaders cleared the bloc’s stimulus package.
Thyssenkrupp had the largest increase, rising 10.9%.  All eyes are on the Brexit trade deal talks as the UK and EU head into the final battle over fishing rights, with officials cautiously predicting an agreement within days. Euro zone annual inflation was
negative for a fourth consecutive month in November (-0.3%), matching a four-year low. Retail and Basic Resources sectors +1.5%, Technology +1%, Travel & Leisure +0.7%, DAX +0.7%, CAC +0.3% and the FTSE 100 is +0.1%.

Asian stocks advanced, rising for a second day on hopes of a stimulus deal in the US and the Fed’s commitment to support the economy. Hong Kong
shares ended the day up 0.8%, bolstered by a more than 2% gain for both Tencent and Alibaba. Australia’s ASX 200 climbed 1.2% as employers added more than twice the number of jobs forecast. Chinese drugmakers also jumped as investors bet the latest round of
negotiations for firms to enter the national reimbursement drug list will result in milder price cuts than previous rounds. The Shanghai Composite Index rose 1.1% as all sectors gained. Korean shares saw modest losses, with concerns rising over the possibility
of the government raising its social distancing alert to the highest level.

FIXED INCOME: 
 

Treasuries are slightly cheaper across the curve in early US trading as stocks attain new highs. The 10-year yield is around 0.92%, close to
where it stood just before FOMC rate decision, which sparked a temporary selloff as bond-buying program was left unchanged.

METALS: 

Gold prices rose as much as 1% as the dollar index extended its slide on progress with US stimulus plans and the Federal Reserve's commitment
to pump more cash into the economy and keep interest rates low. Silver continues to outperform, up 3.4%.

ENERGY:  

Oil climbed to a nine-month high after government data showed a fall in US crude stockpiles last week, while progress towards a US fiscal stimulus
deal and strong Asian demand also buoyed prices. The physical market remains robust as India’s refineries are running at full tilt. There are signs, however, of weakening consumption from some countries as the coronavirus stages a comeback.

CURRENCIES:  

The general risk-on mood sent dollar to 2-1/2-year lows against major peers, while the pound rallies on growing Brexit optimism.  Better-than-expected
labor data in Australia pushed the Aussie dollar higher to its highest level since mid-2018, +0.75%. The kiwi rose to its strongest since early 2018 after New Zealand’s economic growth beat expectations.

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 8:05am ET:

Advancers

• OCG +208.7% (+$12.7); Newcomers Wunong, Oriental Culture Surge in U.S. Premarket
• LKNCY +35.8% (+$1.34); Luckin to Pay $180 Million to End SEC Probe After Collapse
  
• EOLS +30.8% (+$1.13); AbbVie Wins Bid to Block U.S. Imports of a Botox Rival
  
• VVOS +22.4% (+$1.52)
• MARA +21% (+$1.73)
• RAD +19.2% (+$3.29); Rite Aid Soars After Boosting FY Revenue Forecast
  
• WNW +15.2% (+$9.90); Wunong Net Technology Rises 440%: Chinese U.S. Listings
• MGNX +14% (+$3.47); MacroGenics Shares Jump on FDA Approval of Margenza
• CAN +13.7% (+$0.52)
• BTBT +13.7% (+$0.69)
• PROG +12.9% (+$0.60); Progenity Expands Covid PCR Testing Services Across U.S.
• ENLV +10.9% (+$1.12)
• ORBC +10.4% (+$0.70)
• SELB +10.4% (+$0.30); Selecta Bio Rises as Medical Chief Buys Over $120,000 Shares
  
• MTCR +10.1% (+$0.99)
• DYAI +9.8% (+$0.60)
• KEP +9.3% (+$1)
• JBL +9.1% (+$3.74); Jabil 1Q Core EPS Beats Estimates
• ABUS +8.6% (+$0.38); Arbutus Biopharma Rated New Buy at HC Wainwright; PT $10
• MYOV +8.5% (+$2.07)
• RIOT +8.3% (+$0.89); Crypto-Exposed Stocks Extend Rally as Bitcoin Tops $23,000
• EQOS +7.8% (+$0.76)
• ETAC +7.3% (+$0.74)

Decliners

• TRIT -18.3% (-$2.42)
• ZYNE -9.1% (-$0.38)
• CVAC -8.8% (-$10.2)
• OTIC -5% (-$0.28); Otonomy Reports Positive Top-Line Data From OTO-413; Shares Up
• RRGB -4.7% (-$0.93); Red Robin Cut to Underweight at Wells Fargo
• HZNP -3.5% (-$2.70)
• GLSI -3.4% (-$1.66)
• BNTX -2.7% (-$2.90)
• GLPG -2.4% (-$2.32)
• GSX -2.2% (-$1.34); GSX Techedu ADRs Cut to Neutral at UBS; PT $47

David Wienke

Cabrera Capital Markets, LLC