Aluminum producer Alcoa Corp (NYSE:AA) has been on an impressive win streak lately, up 1.1% at $41.17 today as shares charge back toward their May 10, two-year peak of $44.42. The 10-day moving average has also helped guide the equity higher, and year-to-date, AA is up 77%. Plus, there's evidence AA isn't done climbing just yet, with a historically bullish signal now flashing. 

Specifically, AA is trading near a 52-week high amid historically low implied volatility (IV) -- a bullish combination for Alcoa stock in the past. According to a study from Schaeffer's Senior Quantitative Analyst Rocky White, there have been two other times in the past five years when the security was trading within 2% of its 52-week high, while its Schaeffer's Volatility Index (SVI) stood in the 20th percentile of its annual range or lower. This is now the case with AA's SVI of 47%, which sits in the lowest percentile of its annual range.

White's data shows that one month after both of these signals, the security was higher, averaging an 8.1% return. From the stock's current perch, a similar move would have AA toppling its aforementioned two-year peak, putting it just above the $48 level. 

A  shift in sentiment could give AA some leverage, too. Of the seven analysts in coverage, three still consider the stock a tepid "hold." Meanwhile, short interest is up 14.3% in the last two reporting periods, and now makes up 6.2% of the stock's available float -- ample room for a short squeeze, should some of these bears begin to hit the exits. 

Now is an opportune time to buy options on AA. In addition to the equity's extremely low SVI, which implies options traders are pricing in low volatility expectations at the moment, the stock's Schaeffer's Volatility Scorecard (SVS) sits at a high 89 out of 100. This means AA tends to outperform these volatility expectations -- a boon for buyers. 

The shares of Nio Inc (NYSE:NIO) have been middling since the start of the month, though the 60-day moving average has swooped in as support over the last two sessions. NIO was last seen up 2.7% to trade at $45.03, and the company is gearing up for its second-quarter earnings report, due out after the close on Wednesday, August 11. Ahead of the event, the stock is seeing a surge in options activity.

Nio stock has maintained its nearly constant presence on Schaeffer's Senior Quantitative Analyst Rocky White's list of stocks that have attracted the highest weekly options volume within the past two weeks, with new names added to the list highlighted in yellow. Specifically, 1,040,880 weekly calls and 464,834 weekly puts have been exchanged during this time. The most popular contract during that two-week period was the weekly 7/30 45-strike call.  

A look back at NIO's post-earnings history during the past two years shows a fairly dismal response, with only two of the last eight next-day sessions ending higher, though one of those includes the most recent first-quarter report in April. Nio stock has averaged a large post-earnings swing of 15.7%, regardless of direction. This time around, the options market is pricing in a smaller move of 10.4%. 

Now could be a good time to weigh in on the security's next move with options. The stock is seeing attractively priced premiums at the moment, per NIO's Schaeffer's Volatility Index (SVI) of 71%, which sits in the 18th percentile of its annual range. Furthermore, the security's Schaeffer's Volatility Scorecard (SVS) sits at a high 95 out of 100, meaning SYF has exceeded option traders' volatility expectations during the past year.

The shares of solar power company JinkoSolar Holding Co., Ltd (NYSE:JKS) are up 3% at $56.50 this afternoon, after the firm announced it obtained China's first photovoltaic module Life Cycle Assessment (LCA) certificate. Today's price action has brought JinkoSolar stock to a year-over-year lead of 172.2%. And though the $64 level rejected the security's mid-July rally attempt, a historically bullish trendline a bit lower on the charts could propel JKS back towards annual highs.

Specifically, JinkoSolar stock just pulled back to its 40-day moving average, after spending a few months trading above this key trendline. According to data from Schaeffer's Senior Quantitative Analyst Rocky White, six similar signals have occurred in the past three years. After 80% of these pullbacks, JinkoSolar stock enjoyed positive returns one month later, averaging a substantial gain of 22.3%. A similar move from its current perch would put the stock at $69.10, a chip-shot away from its Jan. 27, annual high of $76.53.

Digging deeper, shorts are already hitting the exits at a rapid pace. Short interest fell 23.1% in the most recent reporting period, though the 7.16 million shares sold short make up a healthy 15.8% of the stock's available float. Should this pessimism continue to unwind, it could put even more wind at the equity's back. 

A shift in analyst sentiment could also propel JinkoSolar stock higher. Though there's just two brokerages covering the solar concern, both recommend a hesitant "hold." Meanwhile, the 12-month consensus price target of $41.19 is a 27.2% discount to current levels.

Now looks like a good time to weigh in on the security's next move with options. The stock's Schaeffer's Volatility Index (SVI) of 75% stands higher than just 18% of all other readings in its annual range, implying that options players are pricing in relatively low volatility expectations at the moment. 

“…round 1,000-point intervals on the DJI have acted as meaningful support and resistance in the short term. But a pattern has emerged around the 34,000-35,000 area that is similar to the behavior that the DJI displayed around two other psychological round number levels - 30,000 and 31,000 - from November 2020 into March 2021…a breakout above 35,000 would complete the bullish inverse ‘head and shoulder’ pattern, with a targeted move to 36,710 within three months”

          -Monday Morning Outlook, August 2, 2021

Last week, I detailed a pattern that I am noticing on the Dow Jones Industrial Average (DJI— 35,208.51) with respect to its months-long battle at 35,000 and the potential bullish implications. With the DJI yet to make a convincing and sustained move neither above nor below this level, my attention this week turns to the Nasdaq-100 Index (NDX—15,109.36), which is battling at millennium area of its own;15,000.

Since July 2020, the NDX has crossed the 11,000, 12,000, 13,000 and 14,000 psychological round numbers. Since mid-July, and coincident with the DJI battling 35,000, the NDX has been trying to make a convincing move above 15,000. 

While the NDX’s 13,000 level was taken out with relative ease this past January, it was still coming into play as late as May, when it acted as support. But note that 11,000, 12,000 and 14,000 proved more difficult to overcome. The 14,000 is the most intriguing of all, which is also roughly double the closing low of early 2020 at 7,000. It was at 14,000 that a two-week,7% decline began, before another millennium level, 13,000, acted as the trough.

As we are going into about a month with 15,000 acting as a lid, one risk is a repeat of the action that occurred around 14,000, in which a pullback to the prior millennium area occurred before an eventual breakout. If such price action is imminent, lying just below 14,000 is the NDX’s 120-day moving average, which acted as support in early March and mid-May. 

I bring this up now not only because the DJI is battling 35,000 simultaneously, but because two prior pullbacks in the NDX occurred within the context of bond market weakness. 

Even though the NDX pushed back above 15,000 last week to its late-July high, the bond market displayed weakness, attributed to remarks by two key Fed governors. Fed Governor Christopher Waller outlined what he saw as a factor that could contribute to a tapering of bond purchases that begins in September, when he said two payroll numbers above 800,000 could be a trigger. Friday’s payroll number was above that threshold. Moreover, Fed Vice Chair Richard Clarida remarked lift-off with respect to an interest rate hike in late 2022, sooner than the 2023 the Fed’s dot-plot indicated at an earlier meeting. 

Per the chart below, the iShares 20 Plus Year Treasury Bond ETF (TLT — 147.78) broke below its 20-day moving average, which held multiple pullbacks since early June. If the TLT breaks below $147.31, which is 10% above its March closing low, or back below its 200-day moving average, risks may increase for another NDX pullback, attributed to rising interest rates.

This scenario is worth keeping an eye on, especially with the buy (to open) put/call volume ratio on NDX components coming off an extreme low recently. As the low in this ratio occurred in early July, it may take the NDX to move below the early-July low at 14,600 before optimists begin feeling the pain that results in a more serious unwinding of big-cap tech optimism. If you want to hedge a short-term pullback in NDX related stocks, you could purchase QQQ puts, as the 30-day implied volatility (IV) reading is within a half percentage points of its 52-week low, per data from TradeAlert.

“Delta Impact Increasingly Threatens Some Parts of U.S. Economy”

          -Bloomberg, August 5, 2021

“BofA’s Carey Hall Says Stock Sentiment Nearing ‘Sell Signal’”

         -Bloomberg headline, August 6, 2021

Regardless of how “tech-land” plays out via NDX in the short term, this has been a rotational market, which means investors simply rotate into other groups if one group suddenly becomes out of favor.

Therefore, I still expect that the SPX could continue to trade within its bullish channel that I have displayed weekly, even if tech undergoes a pullback or period of underperformance if bonds continue to decline.

Economically sensitive stocks, for example, have held their own, despite growing worries about the economy, whether the concerns are Covid-19 Delta variant related or a policy mistake by the Fed. Sentiment worries abound too, implying those market participants using sentiment as a tool to time the market are either hedged or on the sidelines, which may imply lower risk than appears on the surface in regard to the broader market. 

We find value in sentiment indicators too, but strongly believe they should be used in conjunction with price action. As such, the current sentiment backdrop should be elevated in its importance if there is a technical breakdown in equity benchmarks. Such a deterioration in the technical backdrop could mark the beginning stages of an unwind of the optimism that so many have been in tune with for months. Yes, optimism is likely to persist at short-term and longer-term tops, but such optimism may persist longer than anticipated, which has been the case in this environment.

“If the Dow breaks out and sustains a move above 35,000 resistance, I would expect that at the very least the S&P 500 Index (SPX) will trade within the bullish channel that has been in place since mid-November…In order for short-term traders to get rattled and the shorts to be bolder after months of covering activity, I think it will take at least a week’s worth of continuous trading below its channel …  4,475 is double last year’s closing low at 2,237.40.”

         - Monday Morning Outlook, August 2, 2021

The above excerpt brings me to the S&P 500 Index (SPX — 4,436.52) chart readers of this commentary have seen weekly and is well worth paying attention to.

I continue to see 4,475 as a potential hesitation and/or level from which sellers could emerge, as this represents double the 2020 closing low and is just below the 4,500 half-century mark. The top of the channel ranges between 4,480 at the start of this week and 4,498 at week’s end. 

If sellers do emerge in the areas discussed above, I think it will take a lengthy period in which the SPX trades below its bullish nine-month channel for even more damage to occur in equities. This coming week, the bottom of this channel ranges between 4,345 and 4,360, and the popular 50-day moving average sits below this area in the 4,300 zone. Its 80-day moving average sits at 4,250 and marked the trough in March. In other words, it is likely to take more than a 4% pullback to below 4,250 to shake out the long-time optimists.

As it stands now, the technical backdrop is supportive of the optimism that is present. 

Todd Salamone is Schaeffer's Senior V.P. of Research

Continue Reading:

• The Week Ahead: Disney Earnings, Jobs Data to Highlight Coming Week
• Indicator of the Week: Taking the Pulse of Investor Sentiment Right Now

This week economic indicators and earnings reports from some major names will keep trickling in throughout the second week of August, though at a much slower pace, as the earnings season starts to wind down. Some of the biggest companies to report quarterly earnings the second week of August  are Airbnb (ABNB), 3D Systems (DDD),  BioNTech (BNTX), Chegg (CHGG), Coinbase Global (COIN), eBay (EBAY), Nio (NIO), and Walt Disney (DIS), to name a few. In terms of indicators, investors will be looking ahead to job openings, productivity, and unit labor data. Plus, the producer and core consumer price index are due out, alongside the latest round of initial and continuing jobless data.

The following companies are slated to release quarterly earnings today, August 9:

Air Products and Chemicals Inc. (NYSE:APD -- $290.82) provides atmospheric gases, process and specialty gases, equipment, and services worldwide. Air will report its Q2 earnings of 2021 before the bell today.

Bally's Corp. (NYSE:BALY -- $53.48) owns and operates gaming and racing facilities in the United States. Bally's will report its Q2 earnings of 2021 before the bell today.

BioNTech S.E. (NASDAQ:BNTX -- $389.01) develops and commercializes immunotherapies for cancer and other infectious diseases. BioNTech will report its Q2 earnings of 2021 before the bell today.

Cerence Inc. (NASDAQ:CRNC -- $105.46) provides AI-powered assistants and innovations for connected and autonomous vehicles. Cerence will report its Q2 earnings of 2021 before the bell today.

DISH Network Corp. (NASDAQ:DISH -- $41.97) provides pay-TV services in the United States. DISH Network will report its Q2 earnings of 2021 before the bell today.

Energizer Holdings Inc. (NYSE:ENR -- $40.80) manufactures, markets, and distributes household batteries, specialty batteries, and lighting products worldwide. Energizer will report its Q2 earnings of 2021 before the bell today.

Epizyme Inc. (NASDAQ:EPZM -- $6.47) discovers, develops, and commercializes novel epigenetic medicines for patients with cancer and other diseases in the United States. Epizyme will report its Q2 earnings of 2021 before the bell today.

Gates Industrial Corp. (NYSE:GTES -- $18.62) manufactures and sells engineered power transmission and fluid power solutions worldwide. Gates Industrial will report its Q2 earnings of 2021 before the bell today.

RadNet Inc. (NASDAQ:RDNT -- $38.15) provides outpatient diagnostic imaging services in the United States. RadNet will report its Q2 earnings of 2021 before the bell today.

Scientific Games Corp. (NASDAQ:SGMS -- $64.04) develops technology-based products and services, and related content for the gaming, lottery, social and digital gaming industries in the United States and internationally. Scientific Games will report its Q2 earnings of 2021 before the bell today.

ShockWave Medical Inc. (NASDAQ:SWAV -- $182.86) engages in developing and commercializing intravascular lithotripsy technology to treat calcified plaque in patients with peripheral vascular, coronary vascular, and heart valve diseases worldwide. ShockWave Medical will report its Q2 earnings of 2021 before the bell today.

Syneos Health Inc. (NASDAQ:SYNTH -- $87.24) provides biopharmaceutical outsourcing solutions company in North America, Europe, the Middle East, Africa, the Asia-Pacific, and Latin America. Syneos Health will report its Q2 earnings of 2021 before the bell today.

TEGNA Inc. (NYSE:TGNA -- $17.60) operates as a media company in the United States. TEGNA will report its Q2 earnings of 2021 before the bell today.

The Trade Desk Inc. (NASDAQ:TTD -- $84.04) operates as a technology company in the United States and internationally. The Trade Desk will report its Q2 earnings of 2021 before the bell today.

Tyson Foods Inc. (NYSE:TSN -- $71.12) operates as a food company worldwide. Tyson Foods will report its Q2 earnings of 2021 before the bell today.

US Foods Holding Corp. (NYSE:USFD -- $34.11) markets and distributes fresh, frozen, and dry food and non-food products to foodservice customers in the United States. US Foods will report its Q2 earnings of 2021 before the bell today.

Viatris Inc. (NASDAQ:VTRS -- $14.25) develops, licenses, manufactures, markets, and distributes brand and generic drugs, complex generics, biosimilars, and active pharmaceutical ingredients (APIs) worldwide. Viatris will report its Q2 earnings of 2021 before the bell today.

3D Systems Corp. (NYSE:DDD -- $27.66) designs, manufactures, sells, and supports precision power conversion, measurement, and control solutions worldwide. 3D Systems will report its Q2 earnings of 2021 after the market closes today.

AMC Entertainment Holdings Inc. (NYSE:AMC -- $32.70) is involved in the theatrical exhibition business. AMC Entertainment will report its Q2 earnings of 2021 after the market closes today.

Cable ONE Inc. (NYSE:CABO -- $1,968.97) provides data, video, and voice services in the United States. Cable ONE will report its Q2 earnings of 2021 after the market closes today.

Cabot Oil & Gas Corp. (NYSE:COG -- $16.28) explores for, exploits, develops, produces, and markets oil and gas properties in the United State. Cable ONE Cabot will report its Q2 earnings of 2021 after the market closes today.

Callaway Golf Co. (NYSE:ELY -- $33.11) designs, manufactures, and sells golf clubs and golf balls, apparel, gear, and other products. Callaway Golf will report its Q2 earnings of 2021 after the market closes today.

Cambium Networks Corp. (NASDAQ:CMBM -- $42.29) provides wireless broadband networking infrastructure products and solutions for network operators. Cambium Networks will report its Q2 earnings of 2021 after the market closes today.

CF Industries Holdings Inc. (NYSE:CF -- $46.19) manufactures and sells hydrogen and nitrogen products for clean energy, fertilizer, emissions abatement, and other industrial applications worldwide. CF Industries will report its Q2 earnings of 2021 after the market closes today.

Chegg Inc. (NYSE:CHGG -- $83.95) operates direct-to-student learning platform that supports students on their journey from high school to college and into their career with tools designed to help them to learn their course materials, succeed in their classes, and save money on required materials. Chegg will report its Q2 earnings of 2021 after the market closes today.

CoreCivic Inc. (NYSE:CXW -- $10.51) owns and operates partnership correctional, detention, and residential reentry facilities in the United States. CoreCivic will report its Q2 earnings of 2021 after the market closes today.

DHT Holdings Inc. (NYSE:DHT -- $5.48) owns and operates crude oil tankers primarily in Monaco, Singapore, Oslo, and Norway. DHT will report its Q2 earnings of 2021 after the market closes today.

Ethan Allen Interiors Inc. (NYSE:ETH -- $23.80) operates as an interior design company, and manufacturer and retailer of home furnishings in the United States and internationally. Ethan Allen will report its Q2 earnings of 2021 after the market closes today.

FibroGen Inc. (NASDAQ:FGEN -- $13.73) discovers, develops, and commercializes therapeutics to treat serious unmet medical needs. FibroGen will report its Q2 earnings of 2021 after the market closes today.

Helios Technologies Inc. (NASDAQ:HLIO -- $81.87) develops, manufactures, and sells solutions for the hydraulics and electronics markets in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. Helios Technologies will report its Q2 earnings of 2021 after the market closes today.

Inter Parfums Inc. (NASDAQ:IPAR -- $79.42) manufactures, markets, and distributes a range of fragrances and fragrance related products in the United States and internationally. Inter Parfums will report its Q2 earnings of 2021 after the market closes today.

Mesa Air Group Inc. (NASDAQ:MESA -- $9.01) operates as the holding company for Mesa Airlines, Inc. that provides regional air carrier services under capacity purchase agreements with the American Airlines and the United Airlines. Mesa Air will report its Q2 earnings of 2021 after the market closes today.

National Health Investors Inc. (NYSE:NHI -- $66.63) is a real estate investment trust specializing in sale-leaseback, joint-venture, mortgage and mezzanine financing of need-driven and discretionary senior housing and medical investments. National Health will report its Q2 earnings of 2021 after the market closes today.

Oak Street Health Inc. (NYSE:OSH -- $63.94) offers healthcare services to the patients in the United States. Oak Street Health will report its Q2 earnings of 2021 after the market closes today.

Penumbra Inc. (NYSE:PEN -- $263.94) designs, develops, manufactures, and markets medical devices in the United States, Europe, Canada, Australia, and internationally. Penumbra will report its Q2 earnings of 2021 after the market closes today.

Planet Fitness Inc. (NYSE:PLNT -- $75.59) franchises and operates fitness centers under the Planet Fitness brand. Planet Fitness will report its Q2 earnings of 2021 after the market closes today.

Qualys Inc. (NASDAQ:QLYS -- $102.37) provides cloud-based information technology (IT), security, and compliance solutions in the United States and internationally. Qualys will report its Q2 earnings of 2021 after the market closes today.

REGENXBIO Inc. (NASDAQ:RGNX -- $31.31) provides gene therapy product candidates to deliver genes to cells to address genetic defects or to enable cells in the body to produce therapeutic proteins or antibodies that are intended to impact disease. REGENXBIO will report its Q2 earnings of 2021 after the market closes today.

SailPoint Technologies Holdings Inc. (NYSE:SAIL -- $49.49) provides enterprise identity security solutions in the United States, Europe, the Middle East, Africa, and internationally. SailPoint will report its Q2 earnings of 2021 after the market closes today.

STERIS plc (NYSE:STE -- $216.29) provides infection prevention and other procedural products and services worldwide. STERIS will report its Q2 earnings of 2021 after the market closes today.

The RealReal Inc. (NASDAQ:REAL -- $216.29) operates an online marketplace for consigned luxury goods. The RealReal will report its Q2 earnings of 2021 after the market closes today.

Vapotherm Inc. (NYSE:VAPO -- $25.39) focuses on the development and commercialization of proprietary high velocity therapy products used to treat patients of various ages suffering from respiratory distress in the United States and internationally. Vapotherm will report its Q2 earnings of 2021 after the market closes today.

Western Midstream Partners L.P. (NYSE:WES -- $18.50) is involved in the theatrical exhibition business. Western Midstream will report its Q2 earnings of 2021 after the market closes today.

ZIOPHARM Oncology Inc. (NASDAQ:ZIOP -- $2.27) focuses on discovering, acquiring, developing, and commercializing a portfolio of immuno-oncology therapies to treat patients with cancer. ZIOPHARM will report its Q2 earnings of 2021 after the market closes today.

Looking ahead to tomorrow, Tuesday has the National Federation of Independent Business' (NFIB) small-business index, as well as preliminary productivity, and unit labor costs data.

All economic dates listed here are tentative and subject to change.

Major benchmarks kicked off the month of August this week, and with it came bouts of volatility. After spending most of the day higher on Monday, stocks turned lower in the last hour of trading, with the Dow erasing an intraday high to finish in the red. A surge in Covid-19 infections, spurred by the delta variant, was to blame for the dip. Traders were able to shake off those fears on Tuesday, though, as bank and industrials stocks helped the broader market recover. The Dow notched its best single-session gain since July 21, while the S&P 500 nabbed a record close.

Stocks fell just as quickly as they rose, however. On Wednesday, The Dow erased all of the previous session's gains to log its worst single-session fall since July 19. Weighing on sentiment was the ADP private payroll survey, as well as Fed comments that interest rate hikes could resume by 2023. Keeping with this volatility theme, that trough did not last very long, as energy and travel stocks pushed the S&P 500 and Nasdaq to record closes ahead of a pivotal jobs report. The U.S. Labor Department reported on Friday  943,000 jobs were added in July, as opposed to the 845,000 jobs analysts expected, while the unemployment rate fell to 5.4%. This pushed the Dow and S&P 500 to new intraday highs, though the Nasdaq faltered. Despite a rollercoaster week, all three benchmarks were eyeing weekly wins.

Tech Names that Made Moves This Week

The tech industry was in focus this week. For one, Square (SQ) popped after acquiring Afterpay for $29 billion in an all-stock deal. Investors were also keeping an eye on Apple (AAPL), which is the best FAANG name to own in August. Online sports gambling name Draftkings (DKNG) was eyeing a key trendline ahead of earnings, while Roku (ROKU) plunged after the streaming device giant reported weak user growth and tight margins.

Another tech name that plummeted this week was Fastly (FSLY). Analysts slammed the software stock with bear notes after a quarterly earnings and revenue miss. On the other hand, Zoom Video Communications (ZM) was set to blow past a technical ceiling. Also making headlines this week was Advanced Micro Devices (AMD), after the chip concern notched five-consecutive record closes.  

All Eyes on Big Pharma

Drug makers gave investors plenty of updates to sift through, too. Options bulls piled on Vaxart (VXRT) after the U.S. Food and Drug Administration (FDA) cleared the way for it to start clinical trials on its oral Covid-19 vaccine. Conversely, Novavax (NVAX) said it would not seek emergency use authorization for its vaccine in the U.S. until the fourth quarter. Eli Lilly (LLY) hit a fresh record, brushing off an earnings miss after reporting weaker demand for its coronavirus therapy.

Meanwhile, blue-chip name Walgreens Boots Alliance (WBA) stood out among one of the worst stocks to own in the pharmaceutical sector this month. Amgen (AMGN) was not looking so hot either, after it lowered its full-year net earnings guidance due to the pandemic. Finally, Amedisys (AMED) was hoping for a post-earnings pop ahead of Wednesday's quarterly report.

Looking Ahead to the Second Week of August

The second week of August brings more quarterly reports and a slew of economic indicators, though the earnings season is finally starting to wind down. The biggest names to enter the earnings confessional include 3D Systems (DDD), Airbnb (ABNB), BioNTech (BNTX), Chegg (CHGG), Coinbase Global (COIN), eBay (EBAY), Nio (NIO), and Walt Disney (DIS). Plus, job openings, productivity, and unit labor data are all due out, in addition to the producer and core consumer price indexes, as well as the latest round of jobless claims. Until then, find out which millennium levels to watch on the Dow, and get a sense of where investor sentiment currently stands.

Welcome back to our weekly series, Schaeffer's Cannabis Stock News Update, where we recap what happened in the world of marijuana stocks and look ahead to how the cannabis industry continues to shape up in 2021.

Investor interest in the cannabis industry is growing at an explosive rate, and the leading players continue to break through legal barrier after legal barrier, especially in the United States. More than 40 U.S. states legalized recreational and/or medical marijuana by the end of 2020. Now, companies are starting to see the opportunity in cannabis cultivation, marketing, distribution, and technology.

News broke on Monday that Louisiana has officially decriminalized the possession of small amounts of cannabis for personal use, effective August 1. This changes possession of personal cannabis up to 14 grams from a felony to a misdemeanor. Over in Midwest, for the first time ever, lawmakers submitted proposed legislation to decriminalize the possession of up to 5 ounces of marijuana on adults 21 years or older and to legalize the personal growth of up to 12 cannabis plants.

Here is a quick roundup of major (and action-worthy!) cannabis stock news from this week: