Cabrera Capital Daily Game Plan

Friday January 8, 2021                                                        Trading
Desk: (312) 236-8907

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

DATA/HEADLINES:  
8:30ET Employment Report; 10:00ET Wholesale Inventories; 11:00ET Fed’s Clarida speaks; 12:00ET Pelosi caucus-wide conference call on impeachment;  3:00ET Consumer Credit

Economists expect the government jobs report on Friday to show the unemployment rate increased for the first time in eight months. Nonfarm payrolls
probably rose by a mere 50,000 positions in December, consensus and the whisper number show, the smallest gain since May and down from 245,000 in November.

TODAY’S HIGHLIGHTS: 

• Trump made a list of potential pardons that includes White House officials, family members and himself
• Pfizer said its vaccine appears to work on the new variants
  
• The FCC won't move forward with an order trimming a liability shield for social media companies
  
• US Capitol police officer dies of injuries from riot
  
• Democrats inch toward second Trump impeachment after Capitol siege
  

Global stocks rose as Treasuries and the dollar were little changed ahead of key US jobs data that could strengthen the case for further stimulus
under a Democrat-controlled Congress. The British economy is beginning to feel the ramifications of life outside the EU. More than 50 British retailers face potential tariffs for re-exporting goods to the European Union, their trade body said, amid warnings
this could make Britain less competitive.  The pandemic claimed its highest US death toll yet, killing more than 4,000 people in a single day, while China has locked down a city of 11 million near Beijing to contain an outbreak after reporting the biggest
rise in daily cases in more than five months.

EQUITIES: 
 UBER down 4% pre-market after chatter of unregistered block trade; Sources cite Goldman Sachs re-offering ~38mm shares in
range of $53.90-$56.13

US equities index futures rose as investors remained optimistic about a unified government. Contracts on the S&P 500 Index traded modestly in
the green as investors awaited today’s labor-market report, forecast to show a sharp slowdown in December hiring. President Trump pledged Thursday to pursue a smooth transition of power and condemned the earlier unrest in the capitol. “A new administration
will be inaugurated on Jan. 20th,” Trump said. “My focus now turns to ensuring a smooth orderly and seamless transition of power.”  On the virus front, more US states reported their first cases of the variant that helped trigger a UK lockdown. New York and
New Jersey reported record daily cases yesterday.

December E-mini S&P futures +0.3%, Nasdaq +0.5%, Russell 2000 futures +0.25%, Dow futures +0.25%. SPX has 3835 as an extension target.

Financial sector nearly back to the all-time highs

Value relative to Growth holding below the key 200 day moving average

Transportation Average holding the ascending trend channel

European stocks headed for their best week since November, led higher by tech shares, which were boosted by earnings reports from US and Asia
chipmakers. The Stoxx 600 Technology index was actually down 0.3% on the week through yesterday, a full 2 percentage points behind the broader index. Now it’s reversed course and flirting with an almost 20-year high. Infineon, AMS and ASM International gained
between 2.2% and 6.3% after global peers Micron Technology and Samsung Electronics provided strong earnings reports.  Germany’s DAX index hit a record high, up 0.8% after data showed both industrial output and exports rose more than expected in November. Credit
Suisse Group AG dropped more than 3% after saying it expects to post a fourth-quarter loss tied to residential mortgage-backed securities. Tech sector +2.7%, Retail +1.15%, Financials +1%, CAC +0.5%, FTSE 100 flat, Autos -0.6%, Banks -0.7%.

Asian stocks climbed to new highs on hopes for U.S. stimulus and investor demand for shares tied to electric vehicles and semiconductors. The
MSCI Asia Pacific Index gained 1.7%, the most in about two months, while key equity gauges rose more than 1% in markets including Japan, Hong Kong, Taiwan, Singapore, Malaysia, the Philippines, and Indonesia. South Korea’s Kospi climbed 4%, the most among
Asian benchmarks.  Hyundai Motor surged 19% even as it backed away from a statement confirming it’s in talks with Apple on developing self-driving car. In Hong Kong, Geely Automobile jumped 20% after the company is said to form an EV tie-up with Baidu. Semiconductor
makers climbed in Asia following a bullish sales forecast from Micron, as well as Samsung’s results (+7%).  The Shanghai Composite Index fell 0.2% (after hitting Jan 2018 high) as Chinese telecom stocks slipped after global index removals.

FIXED INCOME: 
  . 

US Treasuries extended their steepest sell-off in months as investors looked beyond rising coronavirus cases and political unrest in the United
States to focus on hopes for an economic recovery later in the year. Treasury 10-year yield hover near 1.10% after Fed’s Bostic said the US economy could be stronger than expected by midyear, which could lead to an earlier-than-expected tapering of bond purchases.
Cleveland Fed chief Loretta Mester does not think ramped-up fiscal stimulus under Joe Biden will trigger a pull-back on policy this year.

METALS: 

Spot gold fell below $1,900 a ounce, heading for a weekly loss, as the dollar pared losses and equity markets gained.  Other precious metals
also declined. Exchange-traded funds cut 74,000 troy ounces of gold from their holdings in the last trading session. Outgoing President Trump’s administration is moving to loosen mining regulations and green light new mineral projects before leaving office
this month. Administration officials tell Reuters they plan to publish a raft of decisions on Jan. 15 that will expand miners’ access to federal lands.

ENERGY:  

Oil prices hit 11-month highs and Brent crude oil tops $55 a barrel for the first time since February as gains in broader markets added to investor
optimism.  The oil market is gearing up for another tailwind as the annual rebalancing of top commodity indexes gets underway.  The spreading coronavirus remains a near-term concern though. Accelerating cases across Europe prompted a call from the World Health
Organization for stricter measures across the continent, while the UK’s latest restrictions are already compounding a plunge in fuel sales. Analysts said oil prices could see a correction in coming months if their rallies were not backed by stronger fuel demand.

CURRENCIES:  

The pound traded slightly higher, outperforming its Group-of-10 peers on optimism over the UK’s planned coronavirus vaccine roll-out. Sterling
gained against a broadly weaker euro, making up some of the losses it sustained against the shared currency this year. The US dollar remains steady following Thursday’s rebound ahead of fresh US jobs data likely to give clues on the extent of fiscal stimulus
needed to prop up the economy.

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

• VIH +66.2% (+$6.89); VPC Impact Surges; Said to Plan Deal With Bakkt Crypto Exchange
• GSAT +62.2% (+$0.25); Globalstar Jumps as Nokia to Deploy Spectrum
• RIVE +57.9% (+$5.61)
• FTFT +38.3% (+$2.20)
• MRUS +23.8% (+$3.84); Merus Soars on FDA Cancer Treatment Fast Track Designation
• GRNQ +23.4% (+$0.52)
• IDEX +22.5% (+$0.67)
• XNET +19.4% (+$0.97)
• CMRX +19.1% (+$0.95); Chimerix Buys Oncoceutics for $78m in Cash and Stock
• JAGX +18.3% (+$0.49)
• PIPP +14.9% (+$1.56)
• MARA +14.7% (+$3.29); Marathon Patent Implied Volatility Reaches 45th Percentile
• SOL +13.6% (+$2.45); Renesola Power Sells 12.3 MW of Projects in Hungary
• ACEV +12.9% (+$1.55)
• CATM +12.2% (+$4.35); Cardtronics Received $39/Share Offer From Third Party
• EQOS +11.1% (+$1.77)
• RIOT +10.7% (+$2.43)
• EBON +10.6% (+$0.82)
• GOEV +9.2% (+$1.31)
• CPST +8.7% (+$1.20)
• MICT +8.7% (+$0.2); MICT Inc. Rallies on Plans to Move Israel Offices to Hong Kong
• ENG +8.4% (+$0.43)

Decliners

• SRPT -48.3% (-$81.5); Sarepta Sinks on Treatment Miss; Analysts See Buying Opportunity
• SLDB -19.8% (-$1.68); Solid Biosciences Sinks After Sarepta Gene Therapy Study Miss
• GXGX -9.1% (-$1.04)
• CTIC -8.8% (-$0.31)
• CERC -7.9% (-$0.23); Cerecor Offering Prices 12.3m Shares at $2.60/Share
• BNGO -7.6% (-$0.38); BioNano Genomics Slides on Plans to Offer Shares
• UONEK -5.6% (-$0.08); U.S. HIGH YIELD PIPELINE: Urban One’s $825m 7NC3 to Price Today
• VLDR -4.3% (-$1.12)
• UONE -4.3% (-$0.30)
• SUNW -4.2% (-$0.38)
• UBER -4.2% (-$2.36); Uber 38m Shrs Are Said Offered at $53.90-56.13/Shr
• IDT -4% (-$0.52)
• VEDL -3.7% (-$0.38)
• AMRS -3.7% (-$0.32)
• DRD -3.7% (-$0.44)
• SSYS -3.4% (-$0.98)
• CDE -3% (-$0.33)
• MT -2.7% (-$0.70)

David Wienke

Cabrera Capital Markets, LLC