Cabrera Capital Daily Game Plan

Wednesday February 10, 2021                                                        Trading
Desk: (312) 236-8907

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

DATA/HEADLINES  
8:30ET  Consumer Price Index, Core CPI; 10:00ET Wholesale Inventories; Fed's Powell speaks on labor market; 1:00ET  $41 billion 10-year note auction; 2:00ET Federal Budget

Trump's impeachment trial really gets going today

TODAY’S HIGHLIGHTS:  

• China calls on the US to invite WHO to investigate origins of COVID-19 in America; “It’s the WHO who should examine the US data,” said editor-in-chief of
  the Global Times
• Chinese born from 1980-2000 identify with China’s political system, disillusioned with the West
• TikTok Sale to Oracle, Walmart Is Shelved: DJ
  
• Microsoft CEO Says Big Tech Needs Clearer Laws on Online Speech
• Dallas Mavericks to stop playing the national anthem before home games
• Colin Kaepernick joins a blank check SPAC that targets companies that deliver "a significant impact, financially, culturally and socially."
  

World shares rose for the eighth day in a row, reaching record highs, while market sentiment was improved by the prospect of US fiscal stimulus
and vaccine rollouts, before a speech by US Federal Reserve Chair Jerome Powell. The theme continues to be the reflation trade, the bet that Covid-19 vaccines will restore economic growth and fuel gains in everything from stocks to crude oil. On the virus
front, Germany plans to extend restrictions to curb the spread of the coronavirus until mid-March.  Eli Lilly’s combination antibody therapy has been granted emergency use authorization by the US Food and Drug Administration. Mexico gave emergency use authorization
to CanSino's shot.

EQUITIES: 
 

US Index futures advanced with shares in Europe after positive earnings, improving virus trends and stimulus hope. On the stimulus front, the
House bill now includes $350 billion in state and local aid and an end to Medicaid drug rebate caps.  Investors will also watch for comments from Jerome Powell who speaks on the economy today. Cisco slumped 5% after it warned Covid is still dragging demand.
Coca-Cola (+2%) and Under Armour (+6.6) beat estimates this morning. General Motors (-2%) beat analyst estimates for fourth-quarter profit and signaled continued earnings strength this year despite short-term damage from a semiconductor shortage that is cascading
through the auto industry.

E-mini S&P futures +0.3%, Nasdaq +0.3%, Russell 2000 futures +0.4%, Dow futures +0.3%. ES has 3886.50 area as initial short term support.

Twitter gained as revenue beat on solid digital ad sales, but it added fewer new users than expected and warned audience growth will slow.

Tilray led gains in the premarket session, climbing as much as 31% in an extension of Tuesday’s 41% surge after the company signed a deal to
distribute medical cannabis products in the U.K.

European shares rose as upbeat earnings reports from firms including SocGen (3.3%) helped boost optimism around a broader economic rebound. The
pan-European STOXX 600 index rose 0.2%, with basic resources sector, +2%, leading gains. German conglomerate Thyssenkrupp added 8% after it raised its full-year outlook on improved demand, while French investment bank Natixis SA surged 8% after financial group
BPCE offered to buy out minority shareholders. Delivery Hero was flat after reporting a 95% surge in annual revenue. Maersk, the world’s largest container shipping line, slumped 7.1% as it missed analysts’ forecasts and gave a more cautious outlook for 2021.
Dutch Bank ABN Amro dropped as much as 3.3% even after posting a better-than-expected fourth-quarter net profit.  CAC and DAX -0.05%, bank sector +1%

Asian stocks rose for a fourth day, although volumes dwindled ahead of the Lunar New Year holidays. Hong Kong rose 1.9%, a three-week high, after
upbeat data pointed to a continued recovery in China’s economy. Data today showed an annual rise in China’s factory gate prices in January for the first time in a year. China’s PPI rose 0.3%, its fastest pace since May 2019, new bank loans surged to new highs.
China stocks advanced in the last trading session before the Lunar New Year holiday, with the blue-chip index up 2.14% as worries of recent tight liquidity conditions eased due to the latest lending data, South Korean shares rose 0.5% in thin holiday trading,
on rising sentiment from the approval of a coronavirus vaccine.  Gains were capped as South Korea’s unemployment rate soared to a 21-year high, as curbs to contain the coronavirus continue to hurt the job market. Japan’s Nikkei 225 edged up 0.2% led by automakers
after positive earnings from market bellwethers Honda (+5.1%) and Nissan (+3.7%).

FIXED INCOME: 
                                       

Treasuries are slightly cheaper across the long-end of the curve ahead of a $41 billion 10-year new issue auction, which follows Tuesday’s solid
3-year note sale.  The cycle concludes with a $27b 30-year tomorrow. Yields on the 30-year Treasury are holding just below 2% after crossing that threshold earlier this week.

The copper/gold spread is a good proxy for 10 year yields…

METALS: 

Gold advanced for a fourth day, with spot gold +0.1%. Investors will be focused on the US stimulus package as President Biden shrugged off warnings
that the economy may overheat as a result of boosted spending. Still, Biden backed a proposal for quicker phase-outs of planned $1,400 stimulus checks, reducing the overall handout.  Platinum rallied above $1,200 an ounce to a six-year high on bets that a
recovery in industry and stricter emissions rules will tighten supply. Platinum has outperformed its peers this year after spending most of 2020 lagging behind.

ENERGY:  

Oil extended its rally for a ninth day, its longest winning streak in two years, with an industry report showing falling US crude stockpiles
the latest sign of tightening globally supplies. Yesterday API said crude inventories fell by 3.5 million barrels, versus expectations for a 985,000-barrel build. If the API data is confirmed by official EIA data today, it would be an eighth decline in nine
weeks.  Gasoline stockpiles ballooned by almost 5 million barrels in what would be the biggest build since April if confirmed by the EIA. Supply cuts by Saudi Arabia and draining stockpiles in regions including China are helping boost confidence that the market
has shaken off the worst effects of the coronavirus pandemic. US explorers are set to boost drilling and production from the second half of this year, with crude prices set to stay above $50 a barrel, the Energy Information Administration said in its Short-Term
Energy Outlook yesterday.

CURRENCIES:  

The dollar sloshed around two-week lows ahead of a report on US consumer prices. While the CPI reading is expected to be tepid, inflation has
quickly become the biggest issue in markets on speculation the Fed will let the US economy run hot out of the pandemic. The US dollar index has fallen for four straight days as strong corporate earnings along with optimism for additional fiscal support weighs.
The pound extended its longest winning streak since July, buoyed by a broad risk-on tone in markets to touch its highest level against the dollar in almost three years.   

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

• GMDA +48.1% (+$4.76); Gamida Cell Soars in U.S. Premarket After Clinical Trial Results
• ACIC +38.7% (+$4.35); United Airlines, Moelis Invest in Electric Air-Taxi Developer
• GNFT +36.7% (+$1.94); Genfit Soars After Phase 2 Elafibranor Trial Data Published
• CMLF +35.2% (+$5.47); Sema4 to Merge With SPAC CM Life Sciencesfor $793M of Proceeds
• GSAT +26.9% (+$0.56); Globalstar Extends Gains Into Sixth Day in Premarket Trading
• TLRY +25% (+$10.6); Pot Stocks Extend Rally Following Canopy Results, Reddit Touts
• VERU +21.7% (+$4.18); Veru Posts Quarterly Results
• CLVR +20.9% (+$2.70); Tamarack Advisers Buys Into Clever Leaves Common Shares Stock
• PACB +20.8% (+$8.22); SoftBank to Make $900m Investment in Pacific Biosciences: DJ
• SNDL +20.3% (+$0.33); Pot Stocks Extend Rally Following Canopy Results, Reddit Touts
• YCBD +20.2% (+$1.19); CbdMD Falls After Reporting Fiscal First-Quarter Net Loss
• GMBL +18.1% (+$2.53); Esports Entertainment Extends Gains After License Application
• KOPN +17.1% (+$1.46)
• JG +16.7% (+$1.17)
• RAAS +16.7% (+$8); Cloopen Group Holding Rises 200%: Chinese U.S. Listings
• XSPA +16.4% (+$0.42)
• FUTU +15.5% (+$24.0)
• FRX +14.8% (+$1.59); Forest Road SPAC Gains After Confirming Three-Way Fitness Merger
• CTK +14.8% (+$0.58)
• LMNL +14.1% (+$0.78)
• NAII +13.8% (+$2.18)

Decliners

• CPST -13% (-$1.75); Capstone Turbine Posts 3Q Results
• VNRX -12.4% (-$0.78); VolitionRX Offers Shares via Cantor Fitzgerald
• LMB -11.9% (-$1.76); Limbach Falls After Offering of 1.8m Shares Priced at $12/Share
• ENLV -11% (-$2.64); Enlivex Therapeutics Sets Bought Deal at $20/Share
• SAVA -10.7% (-$6.16); Cassava Sciences Reports $200m Registered Direct Offer Stock
• AWRE -9.8% (-$0.59)
• AYX -8.6% (-$11.9); Alteryx Falls on View Though Analysts See Potential: Street Wrap
• XONE -7.8% (-$5); ExOne Offers Shares via Canaccord Genuity, Stifel
• AKAM -7.2% (-$8.49); Akamai Falls With Outlook Seen as Disappointing: Street Wrap
• AAME -5.8% (-$0.38)
• RIOT -5.7% (-$2.28)
• VISL -5.1% (-$0.25)
• CSCO -4.8% (-$2.32); Cisco Falls as Enterprise Sales, Outlook Disappoint: Street Wrap
• UBX -4.5% (-$0.42)
• OCGN -4.4% (-$0.56)
• FLR -4.3% (-$0.84); Fluor Holder BCP Fund II Said to Offer Shares via Morgan Stanley
• MARA -4.2% (-$1.59)
• CCIV -3.9% (-$1.29)

David Wienke

Cabrera Capital Markets, LLC