Cabrera Capital Daily Game Plan

Tuesday February 16, 2021                                                        Trading
Desk: (312) 236-8907

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

DATA/HEADLINES  
8:30ET Empire State Manufacturing Index; 11:10ET Fed’s Bowman speaks; 12:30ET Fed’s George speaks; 1:00ET Fed’s Kaplan speaks; 3:00ET Fed’s Daly speaks / Federal Open Market Committee minutes from the January meeting are due Wednesday

TODAY’S HIGHLIGHTS:   

• Medical centers are rushing to administer vaccines before they go bad
  
• Hong Kong panel recommends Sinovac vaccine for use
  
• Iraq rocket attack hits U.S. forces in northern Iraq
• one grim non-Covid-19 statistic: 81,003, the highest number of overdose deaths ever recorded in the U.S. in a single year
  

Global stocks are in the midst of the longest run of gains in 17 years as optimism over the economic recovery sweeps across markets. The reflation
trade is powering assets tied to economic growth, including commodities and cyclical stocks. At the same time, investors are riding a wave of speculative euphoria from penny stocks to Bitcoin amid abundant policy support. The euro area added jobs at the end
of last year, suggesting businesses are looking beyond the latest economic woes caused by coronavirus lockdowns. In France, joblessness unexpectedly declined to 8% in the fourth quarter.  Hong Kong is relaxing social distancing rules from Thursday, while a
study in Israel showed a 94% drop in symptomatic cases among those who had received two doses. 

EQUITIES: 
 

US index futures advanced, as markets reopen after the holiday. US stocks are set to make up for the Presidents Day holiday closure and catch
up after yesterday's stellar European session, amid optimism over Covid-19 vaccines and fiscal stimulus. Palantir shares climbed in premarket trading, with the company getting a number of mentions on Reddit boards ahead of its earnings report.  PLTR then fell
8% after reporting a surprise fourth-quarter loss, although revenue rose more than forecast. On the virus front, US infection and hospitalization rates fell to their lowest for months and Los Angeles schools may reopen this week after the case threshold dropped
enough.

E-mini S&P futures +0.4%, Nasdaq +0.5%, Russell 2000 futures +0.7%, Dow futures +0.45%.

In Europe, the Stoxx 600 Index edged higher, poised for a fourth day of gains on hopes that lockdowns will ease.  British Prime Minister Boris
Johnson is drawing up plans to gradually ease curbs, saying he wants the current lockdown to be the last. Investor morale in Germany rose beyond even the most optimistic forecast in February on expectations consumption will take off in the coming months. The
ZEW said its survey of investors’ economic sentiment showed a rise to 71.2 versus expectations of a fall to 59.6.  Basic resources and energy stocks are the best performing sectors while media and telecom lag.  Glencore is up over 3.3%, leading a rally among
mining stocks, after it reinstated its dividend. Vivendi was one of the biggest decliners in Europe, dropping nearly 2% after rallying more than 16% yesterday. The move lower came as Citi downgraded the stock from buy to neutral.

Asian stocks rose to a fresh record, led by gains in Hong Kong, which resumed trading after Lunar New Year holidays. Financials were the biggest
boost among industry groups as SoftBank climbed to an all-time high and was the biggest contributor to gains in the MSCI Asia Pacific Index. Entertainment stocks including Imax China and Alibaba Pictures soared in Hong Kong after China’s box-office revenue
hit a record high during the Lunar New Year holiday weekend.  Japanese stocks extended a rally that saw the Nikkei 225 breach the 30,000 level for the first time since 1990 on Monday. Markets in China, Taiwan and Vietnam remained closed for holidays.

FIXED INCOME: 
                                       

Global debt markets are extending a selloff as investors shift money to riskier assets. US 10-year yields rose to touch 1.26%, the highest since
last March, while the 30-year equivalent pushed above 2.07%. Treasury yields higher by up to 6.5bp across long-end of the curve. German bonds fell following the stronger-than-forecast ZEW expectations number, adding to Treasuries downside pressure.

METALS: 

Platinum extended its rally to a near 6-1/2-year high as investors bet the auto catalyst would benefit from a likely pick up in global economic
activity and a push for clean energy technology. Gold slipped 0.6% as the dollar firmed off session lows while investors weighed the slowing pace of coronavirus infections and immunization programs globally. The metal has retreated about 4% this year amid
higher Treasury yields.

ENERGY:  

Crude oil is holding near a 13-month high after freezing temperatures crippled the Texas power system and disrupted crude production. Nearly
5 million people across the US were plunged into darkness as homes and businesses lost power. Homes and businesses from North Dakota to Texas are losing power in the middle of an unprecedented deep freeze that has broken daily temperature records in hundreds
of places. More than a million barrels a day of oil and 10 billion cubic feet of gas production are shut while pipelines have declared force majeure and refineries have halted gasoline and diesel output.  Natural gas futures for March surged as much as 6.6%.

CURRENCIES:  

The dollar slipped against most of its major peers as haven bids diminished on optimism that US fiscal stimulus and the rollout of vaccines will
propel a global recovery. The pound gained a third day to the highest since 2018 against a weakening dollar, amid signs that trade between the UK and EU is normalizing. Bitcoin reached another record, nearing closer to $50,000, as a flurry of recent announcements
indicates the cryptocurrency is winning more mainstream attention.

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

• WBAI +79.5% (+$15.9); 500.com Limited Buys BTC.com Businesses
• PTVCB +46.6% (+$6.99); Progressive to Buy Protective Insurance for $338m
• SOS +34.4% (+$2.56)
• GTHX +30.3% (+$9.36); G1 Therapeutics Surges on FDA Approval of Cosela
• SBBP +29.2% (+$0.97); Strongbridge Biopharma Promotes New President and CFO
• TRCH +27.7% (+$0.79); Torchlight Energy Jumps 30% Postmarket; Stock Up 850% Since Dec.
• CAN +26.3% (+$3.43)
• FINV +25.4% (+$1.57)
• SESN +25% (+$0.70); Cancer Biotech Sesen Bio Rallies Ahead of Business Update
• FTFT +21.3% (+$1.81); Hudson Bay Capital Management Buys Into Future FinTech Group
• GHVI +21% (+$3.44)
• KOPN +18.8% (+$2.04)
• EBON +17.2% (+$1.15); Crypto Stocks Jump as Bitcoin Comes Closer to $50,000 Milestone
• SINO +16.7% (+$1.29)
• RIOT +16.7% (+$8.22); Crypto Stocks Jump as Bitcoin Comes Closer to $50,000 Milestone
• PDAC +16% (+$2.22); Peridot Jumps 28% on Report of Deal With Battery Recycler
• KMPH +15.3% (+$1.43)
• NCTY +15.2% (+$5.98)
• STPK +15.1% (+$5.92)
• AREC +15.1% (+$0.96)
• OCUL +15.1% (+$2.92); Ocular Therapeutix Gains on Interim Data From OTX-TKI Trial

Decliners

• BLUE -30.1% (-$13.8); Bluebird Temporarily Suspends Phase 1/2, 3 LentiGlobin Studies
• CRTX -26.4% (-$12.5); Cortexyme Says FDA Put Partial Clinical Hold on Atuzaginstat
• FTI -18.2% (-$1.88); Technip Energies Starts Trading in Paris After Spinoff
• WNW -10% (-$3.22)
• GLMD -9.5% (-$0.48)
• EQ -9% (-$0.94)
• NNDM -8.7% (-$1.36)
• WPG -7.3% (-$0.88)
• IH -7.1% (-$1.51)
• GLPG -6.3% (-$5.44)
• ALGM -6.1% (-$1.86)
• MNPR -5.8% (-$0.59)
• PLTR -5.3% (-$1.69); Palantir Reports 4Q Loss Wider Than Estimates: Snapshot
• AUVI -5% (-$0.66)
• QS -4.8% (-$2.64); Fisker, QuantumScape Climb: NEX Index Movers
• CCIV -4.4% (-$1.76)

David Wienke

Cabrera Capital Markets, LLC