Cabrera Capital Daily Game Plan

Friday March 5, 2021                                                        Trading
Desk: (312) 236-8907

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

DATA/HEADLINES  
8:30ET Unemployment Report, Trade deficit; 3:00ET Fed’s Bostic speaks

Today's employment report is expected to show that US employers added just under 200,000 new positions in February, with the unemployment rate
holding at 6.3%.

TODAY’S HIGHLIGHTS:   

• Dr Seuss books are nine of the top 10 best-selling titles on Amazon after ‘cancel’ row
• The US and UK are weighing additional penalties against Russia over the use of chemical weapons
• Global growth may reach 7.4% next quarter, Morgan Stanley's economists said
  
• China was the only major economy to increase greenhouse gas emissions in 2020
  

Rising US bond yields put global equities under pressure again after Federal Reserve Chair Jerome Powell’s remarks failed to soothe investor
concerns about a recent surge in borrowing costs. German factory orders rose 1.4% in January, nearly three times as much as expected and boosted by orders from outside the country while domestic demand declined. China will ramp up tech commitment and increase
its annual research and development spending by more than 7% every year over the next five years, highlighting next-generation artificial intelligence and quantum information.

EQUITIES: 
 No major earnings releases scheduled

US equity futures erase losses as investors await key jobs data this morning. The S&P 500 is trying to hold onto to this year’s gains, while
the rotation out of tech has the Nasdaq down 3% on the year. US based stock funds in the week ended Wednesday posted $3.3 billion outflows, according to Lipper.  Broadcom slipped 0.9% after its forecast and chip revenue missed high expectations fueled by iPhone
sales; AVGO shares were down 4.2% yesterday. As the stimulus struggle drags on, the GOP will try to downsize the bill in a voting session that'll extend the debate into the weekend.       

E-mini S&P futures +0.3%, Nasdaq +0.2%, Russell 2000 futures +0.5%, Dow futures +0.25%.  ES will remain short term negative below 3801 area for
now. ES held the .786 retrace of the month, and is initial key support

The Nasdaq entered correction territory, down over 11% from the highs at yesterday’s low and closed down 3% on the year.

Palantir Technologies led the drop in the US premarket session with a loss of 3%, while other technology stocks including Tesla extended their
declines. PLTR continues to hold key Fibonacci support.

Gap gained over 3% after gross margin topped consensus, even as comp sales fell short.

Costco fell 1.6% after EPS missed but comp sales beat.   

Travel and leisure firms led declines (-1.5%) on Europe’s Stoxx 600 index, while banks, oil & gas and mining stocks outperform on the bounce
as regional indices pared losses. Still, the STOXX 600 was on course to post a 1.2% weekly rise as investors bought economically sensitive stocks such as automakers, insurance, oil & gas companies on bets of a speedy economic bounce back this year. London
Stock Exchange Group contributed the most to the index decline and had the largest move, with a decline of 12% after underwhelming annual results. The FTSE 100 reversed early losses with pro-cyclical sectors such as banks and energy on the rise.  HSBC Holdings
contributed the most to the index gain, +3.3%. Energy sector +1.4%, Basic Resources +1.15%, Banks +0.75%, Financials -1.3%, DAX -0.4%, CAC -0.25%, FTSE 100 +0.5%

Asian stocks fell, heading toward the lowest level in a month, after an overnight surge in US bond yields and a slower-than-expected China growth
target. Key gauges in China and Hong Kong declined after Beijing targeted GDP growth of 6% this year, below economist estimates, at the start of the nation’s National People’s Congress. Still, by the end of the day, both the CSI 300 and Hang Seng indexes pared
drops of at least 2%.  The Shanghai Composite Index ended just slightly lower as China’s regulators are telling banks to trim their loan books this year to guard against risks emerging from bubbles in domestic financial markets. Regional benchmarks fell the
most in Australia, India and South Korea. Japan’s government recommended extending its virus state of emergency for the Tokyo region by two weeks. The MSCI Asia Pacific Index slipped 0.8% while Japan's Topix index closed 0.6% higher.

FIXED INCOME: 
                                       

 Treasuries stabilized overnight after being whipsawed Thursday on disappointment that Federal Reserve Chair Jerome Powell offered no specific
course of action to rein in long-term rates. Powell said the sell-off in Treasuries was not “disorderly” or likely to push long-term rates so high the Fed might have to intervene more forcefully. He also reiterated a commitment to maintain ultra-easy monetary
policy until the economy is “very far along the road to recovery.” The market was heavy during the Asia session, focused on next week’s supply, comprising 3-, 10- and 30-year auctions.

Bank of Japan Governor Kuroda shot down the idea of widening the trading range for benchmark yields ahead of a policy review, triggering a drop
of 8 basis points in 10 year JGBs. He said the bank wanted to keep the whole yield curve low as the economy recovered from the pandemic in contrast with the steady growth outlook back in 2018.

METALS: 

Spot gold is little changed after touching the lowest in almost nine months after Federal Reserve Chairman Jerome Powell stopped short of forcefully
pushing back against the recent surge in long-term borrowing costs, sending US Treasury yields soaring. Gold has in little over two months gone from being a favored reflation bet to heading for its worst first quarter in almost four decades.  Optimism that
the rollout of Covid-19 vaccines will drive a global recovery has pushed investors to switch from the traditional haven to other assets.

ENERGY:  

Oil prices jumped more than 4% after OPEC and its allies agreed not to increase supply in April as they await a more substantial recovery in
demand.  In response to OPEC+’s decision, several banks raised their forecasts for oil prices in the coming months, with some seeing sharper market deficits and stockpile drawdowns ahead.  WTI rose above $65 a barrel for the first time since January 2020.

CURRENCIES:  

The US dollar rose broadly after Federal Reserve Chair Jerome Powell expressed no concern about a recent sell-off in bonds. The dollar index
rose to three month highs, +0.3%. Riskier currencies, including the Australian dollar (-0.8%), slid along with stocks as investor sentiment again turned sour.  The Pound fell to a two week low and the yen hit a nine-month low, while EURUSD hit its lowest level
since the end of November.

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 7:35ET:

Advancers

• SIFY +29.6% (+$0.80); Blackstone Said in Talks for Minority Stake in India’s Sify
• FLGT +26.3% (+$22.5); Fulgent Soars While the Longevity of Covid Testing Boom Debated
• WTRH +18.4% (+$0.55); Waitr Surges on Plan to Expand Into Cannabis Delivery
• AQMS +13.8% (+$0.49); Aqua Metals Rated New Buy at HC Wainwright
• TYL +12.1% (+$46.0); Tyler Tech RSI Oversold
• LFMD +10.1% (+$1.46); LifeMD Q1 2021 Revenues on Track to Exceed $17 Million
• GWAC +9.5% (+$0.95); Bitcoin Miner Cipher Mining Tech to Go Public In SPAC Merger
• PLYA +9% (+$0.62); Playa Hotels Reports Earnings: Chart of Revenue vs Estimates
• CDEV +8.3% (+$0.45)
• LIZI +8.2% (+$0.54)
• DSSI +7.8% (+$0.65)
• HGEN +7.8% (+$1.23); Covid-19 Drug Play Humanigen Jumps Ahead of Presentation
• CPE +7.1% (+$2.40)
• NXTC +7.1% (+$0.81); NextCure Raised to Buy at Truist Secs; PT $19
• GOCO +6.7% (+$0.81); Americas ECM Agenda: Bumble, LoanDepot Research; XPeng Results
• SM +6% (+$1.03)

Decliners

• EVFM -26.3% (-$0.86); Evofem Falls Postmarket After Birth Control Drug Update
• SLGG -21.4% (-$1.89)
• AESE -14.7% (-$0.48)
• GSX -14% (-$11.7); GSX Announces Fourth Quarter and Fiscal Year 2020 Unaudited Financial Results
• PETZ -12.7% (-$0.31)
• TTOO -10.8% (-$0.21); T2 Biosystems 4Q Revenue Misses Estimates
• IMAX -8.3% (-$1.71); Imax 4Q Revenue Beats Estimates
• AMRC -7.6% (-$3.65); Ameresco Offering by Co. and Holders Priced at $44/Share
• NCLH -7.5% (-$2.48); Norwegian Cruise Social Media Volume Quadruples
• VYNE -6.6% (-$0.44)
• SI -6.4% (-$7.58); Crypto Stocks Drop in Premarket as Bitcoin Falls For Second Day
• YI -6.4% (-$1.03)
• UPWK -5.9% (-$2.56)
• PACB -5.8% (-$1.67)
• OPEN -5.5% (-$1.33); Opendoor Technologies Slips After First Earnings Since Debut

David Wienke

Cabrera Capital Markets, LLC