Cabrera Capital Daily Game Plan

Tuesday March 2, 2021                                                        Trading
Desk: (312) 236-8907

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

DATA/HEADLINES  
10:00ET Senate Banking Committee hearing on Gary Gensler's nomination as SEC chair; 1:00ET  Fed’s Brainard speaks; 2:00ET Fed’s Daly speaks

TODAY’S HIGHLIGHTS:   

• Cuomo Faces Democratic Calls to Resign as Third Harassment Claim Emerges
  
• Germany to extend coronavirus lockdown until March 28
• The US is preparing to impose sanctions against Russia
  
• Agilent Agrees to Acquire Resolution Bioscience
  

Global equity markets are mixed, but on the defensive after the China banking regulator issued a warning to reduce the high leverage within the
financial system.  Speculation in the property market is “very dangerous” and bubbles in the US and European financial markets may soon burst, he said. Deleveraging is a key priority of Chinese President Xi Jinping due to the size of the nation’s debt. A front-page
report in state media last week argued the economy is strong enough to withstand policy normalization. Beijing is set to unveil its major economic goals on March 5, when the National People’s Congress, assembles for its yearly meeting. President Xi is expected
to reveal plans for greater self-sufficiency in technologies like computer chips, hydrogen vehicles, and biotech.

EQUITIES: 
 Today's earnings are dominated by retailers with Target, Kohl's, Ross Stores, Nordstrom, and AutoZone all reporting.

US equities futures fell, tracking declines in Asia after China’s top banking regulator said that US and Europe market rallies are headed in
the opposite direction to their economies and will face corrections sooner or later. S&P 500 futures are well off the overnight lows, after having its best day since June yesterday.  President Biden will attend a virtual meeting with all Senate Democrats later
today as he tries to keep the lawmakers united to pass stimulus legislation this week.

E-mini S&P futures -0.1%, Nasdaq -0.05%, Russell 2000 futures -0.45%, Dow futures -0.1%.  SP 500 is holding the 50 day moving average which we
are using as initial key closing support along with the trend line in ES.  

Social media postings about Rocket Cos. increased substantially this week with RKT up over 50% from last week’s low (+15% pre-market).

Zoom Video Communications rallied 8% in pre-market trading on an upbeat revenue forecast. ZM held the 200dma nicely ahead of its earnings report.

European stocks grind higher after recording its strongest session in four months yesterday. German unemployment unexpectedly rose, and retail
sales tumbled 4.5%, much worse than expected as the end of a temporary sales tax cut at the end of 2020 weighed on consumer spending. The country plans to extend its coronavirus lockdown until March 28 while easing some restrictions from next week. The Stoxx
Europe 600 Index climbs 0.6% led by industrial goods and services stocks. KION Group (KGX GY) gains over 7% after recording the best order intake in its history.  In the UK, the FTSE 100 Index rose 0.7%, and the pound weakened ahead of the government’s annual
budget report tomorrow. HelloFresh shares tumbled as much as 6.9%, before paring losses, after posting Q4 results that beat, but lacked a guidance update. Construction and Media are leading sector gains, +1.3%, while Energy (-0.6%) and Travel & Leisure lag. 
 

Asian stocks declined after China’s top banking regulator warned about the need to reduce leverage amid the rising risk of bubbles globally and
in the local property sector. China’s CSI 300 Index was the worst-performing regional gauge in Asia, down 1.3%.  Hong Kong’s Hang Seng Index also fell 1.2% after the city’s Chief Financial Secretary said they are not ruling out further changes to the city’s
stamp duty on stock trades. Energy was among the worst-performing sector in the region, while technology shares gained. China clean energy firms jumped following plans from the State Grid on reaching its carbon net-zero emissions target by 2060. The Nikkei
225 Index ended 0.86% lower, after gaining over 2% on Monday.  Gains in financial and IT stocks helped Indian shares rise for a second straight session, with the Nifty 50 index up 1.07%.  South Korean shares closed higher as trading resumed after a long weekend,
with a new stimulus plan to support small businesses and upbeat export data lifting sentiment.

FIXED INCOME: 
                                       

Treasuries are lower with the curve steeper after the Asia-session advance was unwound during European trading, leaving yields cheaper by as
much as 4bp across long-end of the curve. Yields rose despite pressure on US stock futures after China warned about asset bubbles. Long-end-led losses steepen 5s30s by nearly 4bp, 2s10s by 2.5bp. We continue to look for a pause after 10 and 30 year yields
hit key technical targets/resistance.

METALS: 

Gold steadied after falling to an eight-month low, as waning demand for haven assets quickened outflows from exchange-traded funds. On Monday,
gold outflows from ETFs topped 14 tons, the most in three months.  A spike in Treasury yields last week worsened gold’s decline as traders began to price in earlier interest-rate hikes, though Fed officials are playing down that prospect. Spot gold is up 0.5%.

ENERGY:  
OPEC+ meeting on output Thursday

Oil futures reverse early losses, with investors looking ahead to the OPEC+ meeting later this week with expectations that top producers will
agree to raise oil supply.  The group meets on Thursday and its widely expected they will add 500,000 barrels a day but could discuss allowing as much as 1.5 million barrels per day of crude back into the market. OPEC’s crude production plunged, with its biggest
drop in eight months, as Saudi Arabia delivered extra cutbacks intended to clear the remnants of a global supply glut.

CURRENCIES:  

The Australian dollar rose after the Reserve Bank of Australia re-committed to keeping interest rates at historic lows as policymakers attempt
to stop surging bond yields. The US Dollar Index is higher for a fourth day and has climbed about 1.2% since Wednesday as traders take advantage of Treasury yields settling into a higher trading range. The selloff in Treasuries helped to open up a yield differential
between the US and its developed-market peers, boosting the dollar’s attractiveness for global investors. One-month risk reversals, a gauge of positioning and sentiment, show traders are the most bullish on the greenback since the middle of last year. According
to strategists at BofA Global Research, the US is likely to grow twice as fast as the euro area this year, a bullish outlook for the dollar.

We are using the 100dma in the spot US$ Index as short term pivot pt. resistance.

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

Advancers

• KXIN +22% (+$0.77); Kaixin Auto Jumps on Vehicle Sales Contracts Worth $1.2 Billion
• INUV +16.8% (+$0.22); Inuvo Soars in Premarket Trading After News of Google Agreement
• TMDX +16.5% (+$5.98); TransMedics Announces Scheduling of OCS Heart FDA Advisory Committee Meeting
• RKT +15.5% (+$3.77); Rocket Cos. Class A Crosses Above Bollinger Band
• SOS +13.3% (+$0.89)
• SURF +11.4% (+$1.03)
• CERC +11.3% (+$0.42); Cerecor Antibody Cuts Respiratory Failure, Death in Covid Study
• KOPN +10.2% (+$0.94)
• SE +7.8% (+$19.5); Sea’s Sales Double as Asian Shoppers Go Online During Pandemic
• ZM +7% (+$28.8); Zoom Rises After ‘Standout’ 4Q, Guidance Beat: Street Wrap
• PERI +7% (+$1.51); Perion 1Q Revenue Forecast Beats Estimates
• NCTY +6.7% (+$3.03); Nasdaq Breadth Strengthens: Advancers Beat Decliners
• MIK +6.7% (+$1.13); Michaels Shares Rise After NYT Reports Buyout Interest
• NLSN +6.3% (+$1.46); Roku to Buy Nielsen’s Advanced Video Advertising Business
• GSX +6.2% (+$6.49); GSX Provides Update on Its Internal Review
• HXL +6% (+$3.38)
• IFRX +5.8% (+$0.25); Inflarx Closes $75M Offering of Shares and One-Yr Warrants
• DAC +5.7% (+$2.32)

Decliners

• FGEN -25.9% (-$13.1); Buy the FibroGen Dip as Drug Likely to Get Approved, Citi Says
• LODE -16.3% (-$0.86); Comstock Mining Slides on $16m Registered Direct Offer Stock
• INSG -14.8% (-$2.23); Inseego Slides as Analysts Downgrade After Quarterly Results
• PLXP -13.6% (-$1.19)
• RDHL -11.2% (-$1.03)
• MORF -10.4% (-$8.85); Morphic Holding Offers $200m Shares
• APEN -9.2% (-$0.56)
• AI -9.1% (-$11.1); C3.ai Drops After First Earnings Report Follows 188% Rally
• CRDF -7.6% (-$0.82)
• SWCH -6.8% (-$1.20); Switch Class A Maintains Quarterly Dividend at 5 cents/Shr
• DDD -5.9% (-$2.29)
• EAF -5.5% (-$0.69); GrafTech Offering by Brookfield Is Said to Price at $11.88
• LMND -5.3% (-$6.99); Lemonade Slides After Wider-Than-Expected Ebitda Loss View
• JELD -5.2% (-$1.60); Jeld-Wen Offering by Holders Prices at $29.25/Share
• AMTX -5.2% (-$0.78)
• NIO -4.9% (-$2.43); Electric Vehicle Stocks Fall Premarket After Nio’s Results
• INO -4.7% (-$0.54); Inovio 4Q Loss Per Share 14c, Est. Loss/Share 22c
• XPEV -4.6% (-$1.65); XPeng to Launch EV Models That Sacrifice Range for Lower Cost
• NVAX -4.5% (-$10.9); FDA Could Approve Novavax Covid Vaccine As Early As May: CNBC
• CHS -4.3% (-$0.11); Chico’s FAS 4Q Net Sales Miss Estimates

David Wienke

Cabrera Capital Markets, LLC