Cabrera Capital Daily Game Plan

Wednesday September 30, 2020                                                        Trading
Desk: (312) 236-8907

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

DATA/HEADLINES:  
8:15ET ADP Employment; 8:30ET GDP revision; 9:45ET Chicago PMI; 10:00ET Pending Homes Sales Index; 11:00ET Fed’s Kashkari speaks; 1:40ET Fed’s Bowman speaks

Ex-FBI Director James Comey appears before the Senate Judiciary Committee

TODAY’S HIGHLIGHTS:

• Caesars to buy William Hill for $3.7B
• China preparing an antitrust investigation into Google, possibly as soon as October
• Airline payroll support package expires at midnight tonight
• CONTINENTAL APPROVES RESTRUCTURING, MAY LEAD TO 30,000 LAYOFFS
  
• Tesla Inc To Roll Out China-Made Model 3 Vehicles
  
• THE HOUSE RULES COMMITTEE is meeting this morning to lay the groundwork for a floor vote on PELOSI’S $2.2 trillion plan. If we don’t see movement today,
  this is probably done for the time being since the House is leaving this week until after the election.
  

Global investors are taking some risk off the table in the wake of last night's acrimonious US presidential debate.  Investors are keeping an
eye on news about coronavirus vaccines after Britain reported 7,143 new coronavirus cases on Tuesday, the highest single figure to date. Talks in Washington for a new stimulus package are set to reach a critical juncture this week. House Speaker Nancy Pelosi
and Treasury Secretary Steven Mnuchin spoke Tuesday morning for 50 minutes and are set to speak again today.

EQUITIES:  

U.S. equity-index futures dropped alongside most stock markets after a rancorous presidential debate highlighted the risk of a contested vote
in November. S&P 500 futures fell as much as 1.3% in the hours after the chaotic debate. Walt Disney Co. shares fell in pre-market trading after it said 28,000 workers will be let go in one of the biggest layoffs of the Covid era.   

December E-mini S&P futures -0.6%,
Nasdaq -0.7%, Russell 2000 futures -0.6%, Dow futures -0.6%. SPX held below the 50dma which we are using as a closing short term pivot. Looking for a dip down to 3261 area in ESZ and see if that area holds… 

QQQ holding a short term negative tone with settles below this moving average.

AMZN is short term negative below its
50 day moving average.

European stocks slipped as surging coronavirus cases and a chaotic debate that highlighted risks from the U.S. presidential election sapped risk
appetite at the end of a tumultuous month.  The Stoxx 600 Index was 0.3% lower with travel and technology shares hardest hit, while utilities and energy advance. German retail sales rose much more than expected in August (+3.1%) and unemployment fell further
in September, boosting hopes that household spending in Europe’s largest economy will power a strong recovery in the third quarter. Retail and Autos down 0.75%, Tech -0.95%, Travel & Leisure -1.15%, Stoxx 600 -0.3%

Markets in the Asian region were mixed, with Australia's ASX 200 and Japan's Topix Index falling over 2%, and Hong Kong's Hang Seng Index and
India's Sensex Index rising.  Hong Kong shares ended 0.8% higher as sharp gains in China Evergrande Group boosted property stocks, after the developer secured investments to ease some of its liquidity crunch worries. China shares closed lower as losses in
real estate and materials stocks outweighed optimism from upbeat factory activity surveys, with the markets recording their worst monthly loss since May 2019. For the month, the Shanghai Composite index lost 5.23%. Semiconductor Manufacturing International
Corp, China’s largest chipmaker, slid by 25% during the month amid the newly imposed export restrictions by the US. China’s markets will be closed for the Golden Week national holiday from Oct. 1 – Oct. 8.

FIXED INCOME: 
 

Treasuries curve steeper, though yields remain within a basis point of Tuesday’s closing levels ahead of U.S. data raft including September ADP
employment change. Long end may draw support toward end of U.S. trading day from month-end index rebalancing.

METALS: 

Gold fell and was on track for its biggest monthly decline in nearly four years, as the dollar benefited from caution that crept into financial
markets. For the quarter, bullion is on track for its eighth straight gain. Silver was on track for its first monthly contraction since March, falling more than 16%.

ENERGY:  

Oil extended its decline, heading for the first monthly loss since April, as the world’s biggest trading houses signaled a meaningful recovery
in demand is some way off. American Petroleum Institute reported a weekly drop in U.S. crude stockpiles, while Cushing supplies and gasoline inventories rose. Government figures are due later today. Despite demand concerns, there are positive signs for transport
use in Asia. Gasoline prices have surged above those for diesel in recent days as personal vehicle usage jumps in the region. Royal Dutch Shell Plc will cut as many as 9,000 jobs as Covid-19 precipitates a companywide restructuring into low-carbon energy.
Oil workers from a Norwegian union have gone on strike after wage talks failed early Wednesday.

CURRENCIES:  

The pound fell the most in a week against the dollar, breaking a two-day streak of gains as Brexit negotiations showed signs of turning sour.
The European Union rebuffed Britain’s latest effort to unblock their deadlocked trade talks, a sign that the eight-month long negotiations will struggle to hit a key milestone this week. The US$ Index rose 0.2% after two days of losses.

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

• TOUR +34.7% (+$0.32); Tuniu Announces $10m Share Buyback
• YJ +21.7% (+$0.38)
• SRGA +20.1% (+$0.40)
• JFIN +20.1% (+$0.61)
• WATT +13.7% (+$0.42)
• ETON +10.1% (+$0.79); Eton: FDA OKs Alkindi Sprinkle for Adrenocortical Insufficiency
• CVAC +8.3% (+$3.77); CureVac Begins Phase 2a Trial of Covid-19 Vaccine
• CRDF +7.8% (+$1.09); Cardiff Oncology Offering Prices 6.5m Shares at $13.50/Share
• PERI +7.6% (+$0.48); Perion Rated New Outperform at Oppenheimer
• DUK +6.9% (+$5.67); NextEra Tried for Record U.S. Utility Deal With Overture to Duke
• CMTL +6.8% (+$0.95); Comtech Telecom Announces $100m Share Buyback
• GNFT +6.1% (+$0.33)
• MRNS +4.7% (+$0.55); Marinus Pharma Rated New Buy at Truist
• XPEV +4.4% (+$0.83)
• ACMR +4.4% (+$3.06)
• MRNA +4.1% (+$2.88); Moderna, Vaccine Stocks Rise After Candidate Phase 1 Data
• NIO +3.4% (+$0.70)

Decliners

• OAS -38.9% (-$0.16); Oasis Petroleum Files for Chapter 11; Plans to Reduce Debt
• APM -31.5% (-$1.50)
• FCEL -14.1% (-$0.36); FuelCell Offering Prices 43.5m Shares at $2.10/Share
• PLL -10.5% (-$2.67)
• MESO -6.2% (-$1.19)
• MU -3.6% (-$1.85); Micron Analysts See 2021 Recovery After Huawei Hit: Street Wrap
• VSLR -3.5% (-$1.38) MT -2.1% (-$0.28)
• LPX -2.1% (-$0.65)
• SPCE -2.2% (-$0.44)
• U -2.2% (-$2.07)
• DPHC -2.2% (-$0.60)
• WDC -2.7% (-$1.07)
• DELL -3% (-$2.02)
• RUN -3.4% (-$2.50); Sunrun Cut at Goldman Sachs on Valuation After Surge of 770%

David Wienke

Cabrera Capital Markets, LLC