Cabrera Capital Daily Game Plan

Thursday February 11, 2021                                                        Trading
Desk: (312) 236-8907

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

DATA/HEADLINES  
8:30ET Weekly Jobless Claims; 10:00ET  Consumer Sentiment preliminary;  1:00 30 Year Bond Auction

Today's initial jobless claims number is seen falling slightly to 760,000

TODAY’S HIGHLIGHTS:  

• UK scientist said the coronavirus variant found in the British county of Kent is likely “to sweep the world”
• Investors purchased $43 billion in equity funds in the past week, the most since March 2019, Refinitiv Lipper data showed; Bond funds also saw a higher inflow
  
• Biden spoke with China’s Xi about his concern over unfair economic practices and “increasingly assertive actions in the region, including toward Taiwan.”
• BNY Mellon will now be storing bitcoin on behalf of clients – WSJ

Global shares rose for a ninth day running, just off record highs, as investors digested recent gains after a benign US inflation report and
a dovish Federal Reserve outlook. The MSCI world equity index gained a meager 0.1%. The outlook for more global stimulus got a major boost overnight from a surprisingly soft reading on core US inflation yesterday, which eased to 1.4%. The euro zone economy
will rebound less than earlier expected from the coronavirus slump this year, the European Commission said this morning, but added that 2022 growth will be stronger than earlier thought. France and Spain will see the strongest growth rallies this year and
next, the Commission said.

EQUITIES: 
 

US equity index futures rise alongside shares in Europe as traders weigh the implications of soft inflation data. Yesterday, Fed Chair Powell
emphasized that once pandemic effects were stripped out, unemployment was nearer 10% than the reported 6.3% and thus a long way from full employment. Powell called for a “society-wide commitment” to reducing unemployment, which analysts saw as strong support
for President Bidens’ $1.9 trillion stimulus package. Futures for the S&P 500 are 0.3% higher after hitting all-time highs yesterday. Zillow jumped with a number of firms raising their price targets after beating expectations. Zynga gained on a sales beat
and a plan to compete against bigger rivals. MGM Resorts reported a smaller-than-expected loss and has high hopes for online gambling but revenue missed. Tyson Foods (+1.2% pre-market) beat on adjusted EPS, boosted its capex forecast, but missed on sales.

E-mini S&P futures +0.3%, Nasdaq +0.5%, Russell 2000 futures +0.15%, Dow futures +0.2%.

Pot stocks extended their record-setting rally to a fourth day Thursday as Reddit-inspired traders continued to pump up the sector to multiyear
highs. Sundial Growers Inc. led the pack, surging 49% premarket to add to its 161% gain over the first three trading days of the week. FSD Pharma Inc. rose 21%, Organigram Holdings Inc. added 25%, Aurora Cannabis Inc. gained 13% and Tilray Inc. climbed 14%.
The Alternative Harvest ETF, ticker MJ, rose 7.1%. Tilray’s three-day gain to start the week was its biggest ever, although it’s still well below the intraday high of $300 it hit in September 2018.

Small caps continue to outperform as IWM vs SPY is nearing 2016 and 2018 highs in the pair

European shares edged higher as investors kept a close watch on earnings reports for clues on the pace of business recovery.  AstraZeneca rose
1.7%, among the top boosts to the STOXX 600, after the COVID-19 vaccine developer beat quarterly product sales estimates and forecast 2021 revenue growth. Technology shares are up 1.2% leading sectoral gainers. The banks sector dropped over 1% as Germany’s
Commerzbank tumbled 5.3% after the lender said its loss deepened in the fourth quarter. France’s Credit Agricole jumped as much as 5% after posting better-than-expected fourth-quarter results. Saab fell 6% after posting fourth-quarter profits below market
forecasts. Stoxx 600 +0.35%, DAX +0.55%, CAC and FTSE 100 are flat.

It was a subdued session in Asia as markets in China, Japan, South Korea, and Taiwan were closed for holidays. With Chinese markets closed, there
was little reaction to news the Biden administration will look at adding “new targeted restrictions” on certain technology exports to China and would maintain tariffs for now. Hong Kong stocks ended a half-day trading session +0.45% ahead of the Lunar New
Year holiday. Indian shares ended 0.44% higher as investors bought oil-to-telecoms conglomerate Reliance Industries (+4%), while strong earnings drove up Hindalco 5.75%. Australia’s ASX was marginally lower as the tech sector lost 2% while miners gained. Newcrest
Mining, the country’s largest listed gold miner, gained more than 4% after posting a 98% rise in half-year profit.

FIXED INCOME: 
                                       

Treasuries are little changed after a muted Asia session due to Japan holiday. Fed Chair Jerome Powell yesterday said that monetary policy would
remain very accommodative until there was "substantial further progress" on employment and inflation. The Treasury will sell $27 billion of new 30-year bonds today following good reception for Wednesday’s 10-year sale.  JPMorgan expects the supply to be digested
with relative ease, given the backup in yields and robust demand for the long end.

METALS: 

Gold fluctuated with the dollar, as investors weighed Federal Reserve Chair Jerome Powell’s dovish comments as measures of inflation remained
muted. Trading may be relatively quiet today as Lunar New Year holidays begin in nations across Asia, with China starting a week-long break. Spot gold is flat after hitting a one-week high yesterday. Attention continues to center around the US fiscal stimulus,
with a larger package to benefit gold. Platinum climbed as much as 2% as stricter rules on auto emissions remain a tailwind.

ENERGY:  

Oil edged lower after capping the longest run of gains in two years, as the IEA cautioned that the recovery in the market is still fragile. WTI
futures are down 0.7% after surging more than 12% over the past eight sessions. Brent is down 1%. The International Energy Agency said yesterday that global oil supply is still outstripping demand because of COVID-19 lockdowns.  While the IEA cautioned over
the market’s health in the short-term, it also said the outlook for the second half of the year is brighter. Swollen oil inventories will then decline sharply as fuel use picks up. Iraq said the OPEC+ oil cartel is unlikely to change its production policy
at next month’s meeting and repeated promises to deliver overdue output cuts.

CURRENCIES:  

Currency market moves were small overnight because of the Lunar New Year holidays in Japan and China.  The dollar fell during a quiet Asian session
but recovered losses as European markets opened. The Fed’s Powell reiterated yesterday that the central bank’s new policy framework could accommodate annual inflation above 2% for some time before raising rates. The British pound was slightly lower after hitting
a three-year high yesterday as the U.K.’s relationship with the European Union returned to weigh on sentiment. Trading arrangements for Northern Ireland are a particular point of contention and a senior EU official last night appeared to rule out major changes
as requested by the U.K. The European Union rebuffed the U.K.’s call to reset the two sides’ relationship, saying Britain needs to honor the promises it made on Northern Ireland as part of the Brexit deal. Spot US$ Index has short term support around 90.120
area.

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

• ACIU +131.1% (+$9.58); AC Immune Triples After Early Stage Alzheimer’s Vaccine Data
• SNDL +58.3% (+$1.72); Reddit-Touted Pot Stocks Continue to Surge in U.S. Premarket
• INFI +43% (+$1.70); Infinity Soars on Data From Phase 2 Urothelial Cancer Trial
• MVIS +39.9% (+$5.59); MicroVision Rallies on Plans to Meet April Lidar Milestone
• DMTK +32.9% (+$17.5); DermTech Surges on Pact for Its Melanoma Detection Test
• IGC +25.8% (+$0.80)
• AGTC +22.5% (+$1.16); AGTC Announces Posts Results and Business Update
• PTMN +20.5% (+$0.41)
• LYRA +20.2% (+$2.18); Biotechs Applied Genetic, Curis Jump to Join Meme Stock Rally
• NAKD +19.7% (+$0.30)
• MACK +19.5% (+$1.70); Renaissance Technologies Buys New 1.3% Position in Merrimack
• CRBP +17.1% (+$0.58)
• MESO +17.1% (+$1.69); Mesoblast Reports Phase 3 Trial Results for Back Pain Treatment
• SONO +16.8% (+$5.30); Sonos Targets Rise After Robust Results and Outlook: Street Wrap
• TLND +15.7% (+$7.85); Talend Rallies After 4Q Revenue and 1Q Guidance Exceed Est.
• YI +14.4% (+$3.75); 111 Rises 43%, Most Since Sept. 10, 2019: Chinese U.S. Listings
• Z +13.7% (+$22.6); Zillow Soars After Strong Results Spur Citi Upgrade: Street Wrap
• TPX +12.7% (+$3.73); Tempur Sealy Jumps as 2021 EPS Forecast Beats Estimate
• TLRY +12.3% (+$7.84); Tilray Posts Biggest 3-Day Gain as Reddit Crowd Turns to Pot (3)
• CRIS +12.2% (+$1.19); Biotechs Applied Genetic, Curis Jump to Join Meme Stock Rally

Decliners

• FLDM -13.4% (-$0.95); Fluidigm Reports Pact to Market CyTOF Technology to China Labs
• RKDA -13% (-$0.74)
• SMMT -12.5% (-$1)
• COMS -10.6% (-$0.53)
• ELY -10.4% (-$3.30); Callaway Golf Sinks After Wider-Than-Expected Loss
• ATOM -9.8% (-$4.10); Atomera Posted Quarterly Results
• NNOX -8.1% (-$5.99); Nano-X Imaging Offering by Holders Prices at $62.50/Share
• AYRO -7.3% (-$0.84)
• QLYS -6.7% (-$7.90); Qualys 1Q Revenue Forecast Misses Estimates
• MESA -6.7% (-$0.64); Mesa, United Airlines Mull Investment in Archer Aviation
• KDMN -5.6% (-$0.30); Kadmon Slides on $150 Million Convertible Notes Offering
• SAVE -5.6% (-$1.83); Spirit Air Cut to Neutral at Seaport Global Securities
• TAP -5.5% (-$2.68); Molson Coors Says Delayed NHL Season Impacted Results: TOPLive
• AREC -5.5% (-$0.37)
• JG -4.9% (-$0.40)
• PBF -4.8% (-$0.46); PBF Energy Sees Refining Capex at $150m for 1H 2021
• NFH -4.7% (-$0.51)
• GRWG -4.7% (-$2.94)

David Wienke

Cabrera Capital Markets, LLC