Cabrera Capital Daily Game Plan

Tuesday September 29, 2020                                                        Trading

Desk: (312) 236-8907

TODAY’S GAME PLAN:  from

the trading desk, this is not research

DATA/HEADLINES:  

8:30ET Advance Trade; 9:00ET Case-Shiller Home Price Index; 9:15ET Fed’s Williams, Harker speak;  10:00ET Consumer Confidence: 11:40ET Fed’s Clarida; 1:00ET Fed’s Quarles speaks  /  9:00ET IT’S DEBATE NIGHT!

Hopes of a new stimulus package likely rest on developments today after House Democrats released their $2.2 trillion proposal late yesterday.

Speaker Pelosi and Treasury Secretary Mnuchin will hold further phone conversations today. If there is no deal, Democrats said they will proceed with a vote on the plan and then leave town for pre-election campaigning. 

TODAY’S HIGHLIGHTS:

• U.S. judge to weigh whether to drop criminal case against ex-Trump adviser Flynnlink
• Trump warned Americans to expect more coronavirus cases in the weeks ahead, as the U.S. deploys tens of millions of new, rapid tests
• China’s top financial officials are evaluating ways to contain the risks posed by Evergrande
• Putin To Be Among First To Receive ‘Controversial’ Sputnik Vaccine
• Joe Biden’s chances of winning the Electoral College slipped to 77.4%, according to the latest run of poll aggregator FiveThirtyEight’s election forecasting model
• Starting today, the NFL’s waiver claim priority will be reflective of 2020 records

The end-of-month rebound in global equities faded as investors assessed a scaled-back fiscal stimulus proposal in the U.S. against the rising

toll of the pandemic. Global markets are mixed as investors also awaited a pivotal U.S. presidential debate.

EQUITIES:  

Future contracts on major U.S. equity indexes retreated as the recent rally cooled off amid a rising number of deaths related to the pandemic

and a cloudy outlook on U.S. fiscal stimulus. While there were some signs of progress in talks over a fresh U.S. coronavirus relief bill, investors were mostly in a wait-and-see mode ahead of the first presidential debate tonight.

December E-mini S&P futures +0.15%,

Nasdaq -0.35%, Russell 2000 futures -0.2%, Dow futures -0.15%. SPX held below the 50dma which we are using as a closing short term pivot. It makes sense for some weakness or pause here ahead of the debate…  

QQQ has the

279.50 area as closing key resistance.

Banks led the S&P 500 Index to its biggest gain in two weeks as investors found buying opportunities after the gauge fell to its lowest since

July last week.

European stock markets slipped as a rebound in the previous session fizzled out, with investors remaining cautious ahead of the first U.S. presidential

debate.  The Stoxx 600 Index was lower by 0.3% after recording its biggest daily gain in three months on Monday.  Banks are the worst performers after the rally in the sector yesterday. Eurostoxx 50 trades only 0.1% lower having been down as much as 0.8%.

Banks, insurance, and real estate are the worst performing sectors.

Most markets in the Asian region were down, with Hong Kong’s Hang Seng Index dropping 0.9% and Jakarta Composite falling 0.6%, while South Korea’s

Kospi Index gained 0.9% and the Shanghai Composite Index rose 0.2%. Chinese property and banking stocks fell in Hong Kong, following a report about limits on housing mortgages. South Korea outperformed other emerging Asian stock markets as overnight gains

in the US lifted sentiment and investors looked to rebalance their books into month-end and a handful of regional holidays.

FIXED INCOME: 

A quiet start to the session with Treasury yields trading within a basis point of Monday’s closing levels on below-average futures volumes. Focal

points include consumer confidence data, New York Fed conference on Treasury market and first presidential debate tonight.

METALS: 

Gold held onto Monday’s rebound as investors weighed prospects for further stimulus in the U.S. and Europe. Spot gold inched up 0.3% to touch

its highest in almost a week on Tuesday, supported by a pull-back in the dollar, as investors waited for the first U.S. presidential debate and further developments on a new U.S. coronavirus relief bill.

ENERGY:  

Oil prices fell as Europe and the United States grappled with a surge in new coronavirus infections and investors were cautious ahead of the

first U.S. presidential debate. In a clear sign of weak demand in Japan, the world’s fourth-biggest crude buyer, official data showed the country’s imports of oil in August fell more than 25% from a year earlier. We continue to highlight the 50day and 200

day moving averages as key resistance in WIT.

CURRENCIES:  

The US$ is lower for a second straight day as markets awaited the first debate between the U.S. presidential candidates, and signs of progress

in U.S. fiscal stimulus talks. GBP/USD rises 0.3%, helped by optimistic reports around Brexit; the EU said it won’t abandon talks with the U.K. even if Boris Johnson’s government does not withdraw its plan to break international law.

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

• WINT +19.5% (+$1.16); Windtree Announces FDA Acceptance of IND Application for a Phase 2 Clinical Trial Studying KL4 Surfactant in Acute Lung Injury in Adults with COVID-19
• ORGS +16% (+$0.80); Orgenesis Shares Rise as Company to Buy Koligo Therapeutics
• SOHU +14.2% (+$2.56)
• JIH +11.4% (+$1.18)
• ANGO +10.1% (+$1.08); AngioDynamics First Quarter Adjusted EPS Beats Highest Estimate
• SPRO +9.8% (+$0.91)
• CRMD +9.5% (+$0.51); CorMedix Rated New Market Outperform at JMP
• FLDM +7.7% (+$0.56); Fluidigm Gets Boosted Funding for Covid-19 Test Expansion
• INOV +7.5% (+$1.99)
• SHLL +7.5% (+$3.61)
• SRNE +5.7% (+$0.58)
• BIG +5.6% (+$2.69)
• AVXL +4.5% (+$0.21)
• GRAF +4.5% (+$1.09)
• FIT +4.1% (+$0.27); Google Submits New Fitbit Deal Concessions in EU Review
• FMCI +3.8% (+$0.94)
• NGG +3.7% (+$2.02)
• IPOB +3.2% (+$0.53)

Decliners

• IRWD -20.8% (-$1.98)
• PLL -15.5% (-$5.75)
• SPI -10.2% (-$1.04)
• CBAT -8.4% (-$0.22)
• PRTY -5.7% (-$0.17)
• NKLA -4.1% (-$0.80); Nikola’s Milton Accused by a Second Woman of Sexual Assault
• HSBC -3.9% (-$0.78)
• BZUN -3.5% (-$1.20)
• ZTO -3.4% (-$1.08)
• UNFI -3.3% (-$0.63); United Natural Slides After Reporting Planned CEO Departure
• AXSM -3.2% (-$2.46); Axsome Therapeutics Rated New Underperform at BofA
• OI -3.2% (-$0.34)
• HST -2.9% (-$0.32); Park Hotels, Pebblebrook Among BofA Lodging Upgrades; Host Cut
• BEKE -2.9% (-$1.78)
• SFIX -2.1% (-$0.58)
• BDN -2.2% (-$0.23)

David Wienke

Cabrera Capital Markets, LLC