U.S. stocks are rallying again today to end their record-setting week on another high note. In the meantime, we're monitoring moves from weed stocks CannTrust Holdings Inc (NYSE:CTST), Aurora Cannabis Inc (NYSE:ACB), and Canopy Growth Corp (NYSE:CGC). Here's how the shares of CTST, ACB, and CGC are trading today.

New Low For CTST After It Puts Hold on Weed Sales

Things are getting even worse for CannTrust, with the company saying it's halting the sale of all marijuana products after Canadian regulators earlier this week found it had been producing cannabis at unlicensed locations. CTST stock has hit fresh lows as a result, bottoming at $2.68 earlier, and last seen at $2.75 -- down 11.6% on the day. Brokerage firm Eight Capital downgraded its opinion on the company's Canadian shares to "sell," saying it expects the sales halt to last at least through the end of the month. The equity's week-to-date losses now stand at 44%.

Put trading is popular again during this latest sell-off. The contracts are crossing at five times the expected rate, and it appears some traders could be closing positions at the July 2.50 put, which was home to heavy open interest coming into today.

Traders Speculate on ACB Stock

The CTST headwinds are weighing on ACB, pressuring the shares 4.3% lower to $6.87. This puts the equity on pace for its lowest close since February and its first below the 320-day moving average since January. Calls and puts are both crossing at an accelerated rate today, and bulls could be betting on a comeback by buying the July 7 call, the most popular contract today. New positions are also opening at the weekly 7/12 7-strike put.

Before today it was almost all call buying in Aurora Cannabis' options pits. Almost 29,600 long calls crossed in the past 10 days at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), compared to just around 3,500 puts.

CGC Options Volume Spikes

CGC is another victim in today's session, sliding 7% to $34.48. Still, Canopy Growth is sporting a year-to-date lead of 28% and its 14-day Relative Strength Index (RSI) has broken below 30, suggesting the shares are oversold and could be due to rebound.

In the options pits, call and put volume have both blown past their daily averages. New positions are opening at a number of strikes in the weekly 7/12 and 7/19 series, and the 35-strike put from the latter series is most popular. From a broader view, there's heavy open interest at the front-month July 50 call.

It was a banner week for Wall Street, with the Dow and S&P 500 leading the charge with new record highs. The 27,000 and 3,000 levels were both toppled, respectively, thanks to Fed-related tailwinds, as Wall Street cheered dovish mid-week comments from Fed Chair Jerome Powell. The Nasdaq also hit an all-time peak, barreling north of 8,200.

The stock market shook off early-week tech headwinds, and rate-cut support helped all three major indexes pivot higher, now on pace for big weekly wins. The Dow is headed toward a three-day winning streak, while the S&P 500 eyes its fourth gain in a row. 

Dow Stocks Were Busy

Several blue chips had eventful weeks. As alluded to above, Apple (AAPL) weighed down tech stocks early in the week amid concerns of "fundamental deterioration."  This didn't stop options traders from betting bullishly on fellow Dow tech titan Cisco Systems (CSCO). Meanwhile, Microsoft's (MSFT) commercial cloud business picked up a fan, while one analyst called 3M (MMM) guidance cuts "unsettling."

Nike (NKE) stock got a nice boost from the triumphant U.S. Women's National Team and their iconic fourth World Cup Win. And later in the week, UnitedHealth (UNH) drew a frenzy of options bulls after some upbeat political news.

4 Tech Stocks to Toss Now

New "sell" ratings weighed on this trio of tech stocks to start the week. In addition, Applied Materials (AMAT) was part of a sector-wide downgrade. On the other hand, industry stalwart Advanced Micro Devices (AMD) enjoyed what seemed like an endless stream of bull notes, and an upgrade drew a bevy of Square (SQ) options bulls.

Transport, Weed Stocks Make Noise

Airline stocks were in focus, especially after Delta Air Lines (DAL) earnings. The same cannot be said for sector peer Spirit Airlines (SAVE), though, which issued disappointing guidance. Hitting the road, auto stocks Tesla (TSLA) and Nio (NIO) raced higher, with the latter touting increasing China sales. And sticking with cars, Ford Motor (F) got a late-week boost on an expanded Volkswagen partnership. 

CannTrust Holdings (CTST) shares sank, after Health Canada weighed in on its facilities. The company ultimately suspended cannabis sales, dragging this pair of weed stocks into the red. Meanwhile, one options trader placed a big call spread on Cronos Group (CRON), and American Eagle (AEO) became the latest retailer to dip its toe into CBD oil.

Wall Street Freshmen in Focus

Analysts dished out a wide range of ratings on Wall Street newcomer Chewy (CHWY), and Stephens suggested buying this video conferencing duo. Meanwhile, founder and CEO Bernie Schaeffer weighed in on this relatively new stock. Elsewhere, while T-Mobile (TMUS) is no freshman, it will soon be the newest S&P 500 member.

Bank Stocks Ready to Kick Off Earnings Season

Next week will feature the start of a new earnings season, with Netflix (NFLX) among the companies set to report. To get ready, we profiled some bank stocks to watch, as well as some interesting pre-earnings options activity surrounding Citigroup (C). And as stocks soar to new heights, there's reason to believe an even bigger move could be coming. Until then, here are some outperformers to keep an eye on.

UBS downgraded General Electric Company (NYSE:GE) stock to "neutral" from "buy," and dropped its price target to $11.50 from $13, saying it's "taking a breather after recent stock outperformance." The brokerage firm noted, however, that it "can start to look increasingly at the [company's] multi-year turnaround/transformation."

This follows GE stock's monster rally off its mid-December nine-year low at $6.40, up 62% through last Friday's close at $10.37. The equity's 120-day moving average has served as a springboard since a late-January bull gap, with its 40-day moving average more recently emerging as support. This trendline could be tested again today, with General Electric shares down 1% ahead of the bell, while further below here is the round $10 region.

This $10 level has been a popular target among options traders, with the July 10 put home to peak front-month open interest of more than 93,600 contracts. Data from the major options exchanges confirms a mix of buy- and sell-to-open activity since mid-April. Those buying the puts expect GE to breach the strike by expiration at the close this Friday, July 19, while those writing the puts think the equity will stay in double-digit territory through week's end.

More recently, it's been call buyers who have been unusually active on GE. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the equity's 10-day call/put volume ratio of 3.47 ranks in the 91st annual percentile, meaning calls have been bought to open over puts at an  accelerated clip. The July 10.50 strike, in particular, has seen the biggest increase in call open interest over this two-week time frame.

Shares of e-tail powerhouse Amazon.com, Inc. (NASDAQ:AMZN) are inching their way higher this morning, last seen up 0.3% at $2,016.94, as the company's annual Prime Day event kicks off. While the 48-hour sale for Amazon's Prime members is attracting its usual bout of attention, the FAANG stock is catching the eye of analysts.

Specifically, Loop Capital reiterated its "buy" rating and $2,380 price target, saying the event delivers three purposes: to generate significant volume during a slow sales period, increase Prime subscriptions, and create free advertising for AMZN. Meanwhile, Cowen waxed optimistic on Amazon's upcoming second-quarter results, labeling its valuation "attractive."

Jefferies echoed this upbeat take, saying a "key differentiator for AMZN will be its new one-day shipping initiative. Coming into today, all but one of 28 covering analysts carried a "buy" or "strong buy" rating on Amazon stock. 

Looking into options, data from the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) shows the security with a 10-day call/put volume ratio of 1.33, ranking in the 93rd percentile of its annual range. In other words, calls have been bought to open over puts at a faster-than-usual clip.

Further, Amazon stock's short-term options are attractively priced at the moment. This is per the security's Schaeffer's Volatility Index (SVI) of 26%, which ranks in just the 23rd percentile of its annual range. In other words, near-term AMZN options are pricing in relatively modest volatility expectations.

On the charts, Amazon stock has been climbing, inching its way toward fresh record highs. Just last week the stock touched a 10-month peak of $2,035.80, a chip-shot away from the e-tailer's September 2018 record high of $2,050.50. Year-to-date, the powerhouse has tacked on just almost 34%

The shares of Avrobio Inc (NASDAQ:AVRO) are popping today after the drugmaker announced positive data from its clinical trials of its investigational gene therapy drug AVR-RD-01 in patients with Fabry Disease, as well as an 87% substrate reduction in its first post-treatment kidney biopsy. AVRO is up 7.1% at $15.29 in response.

Since spiking at $28.52 in early April, AVRO has suffered a gradual descent on the charts. While the $13 region has caught the stock on multiple occasions, pressure at its 50-day and 40-day moving averages just stifled its most recent rally attempt. Now, Avrobio is trading back north of its 40-day trendline, and is threatening to conquer its 50-day, too. 

Despite it's recent behavior, analysts have been incredibly optimistic on the security, with eight in coverage giving it a "buy" or better rating, and only one saying "hold." What's more, the consensus 12-month target price of $36.50 is at a 59.2% premium to last Friday's close, and represents an area AVRO hasn't reached in nearly two years. 

Shorts have started to rapidly unwind, too, down over 30% in the last two reporting periods to 670,705 shares -- the lowest volume since last February. These bearish bets cover only 2.9% of the stock's available float. However, it would take nearly a week to cover these pessimistic positions at AVRO's average pace of trading, which could mean there's potential for a short squeeze. 

 

One trading day removed from a nasty bear gap, Aurora Cannabis Inc (NYSE:ACB) is attempting a rebound this morning, last seen up 2% to trade at $6.93. This overdue lift comes after the weed company inked growing operations licenses from Health Canada for two outdoor cultivation sites. 

Aurora Cannabis stock is fresh off its worst week of 2019. The $7 level, an area that had served as a floor the last three months, has now emerged as possible resistance. Still, ACB is sporting a year-to-date lead of 36% and its 14-day Relative Strength Index (RSI) sits at 28 -- suggesting the shares are oversold and could be due to rebound.

Analysts have remained undeterred by the security's recent slide. Of the seven analysts covering ACB, five rate it a "buy" or better, with zero "sells" on the books. Short sellers though, have continued to pile on. Short interest increased by 4.5% in the two most recent reporting periods, to 85.93 million shares, the most since mid May.

In the options pits, calls have reigned supreme. ACB's 10-day put/call volume ratio of 6.01 on the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) means that six calls have been traded for every put in the last 10 days.

Whatever the motive, now is the time to pursue options on the weed stock. Its Schaeffer's Volatility Index (SVI) of 50% ranks in the 28th annual percentile, indicating short-term options are pricing in relatively low volatility expectations at the moment.

The shares of Tiffany & Co. (NYSE:TIF) and L Brands Inc (NYSE:LB) are trading in the red this morning due to bearish analyst attention at Citigroup. Let's take a quick look at the bear note and how TIF and LB stocks are trading.

For TIF, Citi downgraded its opinion to "neutral" from "buy" and cut its price target to $100 from $115. The brokerage firm said it doesn't expect the company's second quarter turnaround to go as planned, even though it faces easy comparables from a year ago.

The equity has opened down 1% at $93.70. Year-over-year, it's down more than 28%, and the 200-day moving average looks set to act as resistance again, like it did in April and May, while the 50-day trendline is also bearing down overhead.

Recent options traders have been betting on more downside, based on data from the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). The 10-day put/call volume ratio there comes in at 1.58, which ranks in the 82nd annual percentile, meaning put buying has been more popular than normal. Also on the sentiment front, other analysts are split on their opinions, with half saying to buy the shares, and the others handing out just "hold" recommendations.

LB stock, meanwhile, is trading down 0.9% at $26.26, after it too was downgraded to "neutral" from "buy," while Citi also cut its price target to $27 from $35. The brokerage firm said it may be too late for the company's struggling Victoria's Secret business to turn itself around.

This bear note comes after L Brands was just rejected by the 200-day moving average, and the stock is now testing its year-to-date breakeven level. Meanwhile, Citi's not the only one growing bearish on the shares, as short interest popped more than 26% in the last two reporting periods. Most other analysts are already bearish on the retailer, with 12 of 17 firms handing out "hold" or "sell" recommendations.

Multiple brokerage firms have just made big calls for the healthcare sector. Three names hit with the equivalent of a "sell" rating today are lab equipment specialist Mettler-Toledo International Inc. (NYSE:MTD), diagnostics services provider Quest Diagnostics Inc (NYSE:DGX), and drugmaker Teva Pharmaceutical Industries Ltd (NYSE:TEVA).

Barclays downgraded MTD shares to "underweight" with a $680 price target -- far below the current share price of $818.39. Right now down 2% on the day, Mettler-Toledo is pacing for a fifth straight session in the red, breaking its strong 2019 uptrend. Overall, the equity has a year-to-date lead of almost 45%, yet all other analysts share the view of Barclays.

Specifically, there are eight brokerages in coverage, and they all have "hold" or "strong sell" recommendations. Short interest is also somewhat high, based on the short-interest ratio of 5.90, showing it'd take shorts almost six days to cover, going by average daily trading volumes.

DGX shares were cut to "sell" at Goldman Sachs with a $5 price-target cut to $85. The stock did manage to find support at its 50-day moving average earlier, but still remains almost 13% lower year-over-year. Most analysts are already on the bearish side, with the majority sporting "hold" ratings.

Of note, near-term options traders are unusually call-skewed right now. Quest Diagnostics has a Schaeffer's put/call open interest ratio (SOIR) of 0.29, ranking in the bottom percentile of its annual range, meaning this type of call tilt is extremely rare.

Finally, TEVA stock was cut to "underweight" at Morgan Stanley, which cited the litigation risk around the company for its role in the opioid crisis. The shares have fallen 9% to $8.42, holding near their multi-year lows, and put trading has picked up today, with new positions opening at the September 9 put. 

While the vast majority of analysts have already moved to the sidelines with "hold" or worse ratings, there are still four positive views left, suggesting the streak of bear notes could continue. Meanwhile, short interest keeps rising, up almost 43% in the last two reporting periods.

U.S. stocks have pared their gains after hitting record highs earlier. Three names making moves in the meantime are drugmakers Eton Pharmaceuticals Inc (NASDAQ:ETON) and Capricor Therapeutics Inc (NASDAQ:CAPR), as well as gunfire detection specialist Shotspotter Inc (NASDAQ:SSTI). We'll breakdown how ETON, CAPR, and SSTI shares are trading below.

ETON Crashes on FDA Decision

ETON shares have given back 15.2% today to trade at $7.04 after the company's conjuctivitis treatment failed to win approval from the Food and Drug Administration (FDA). This set up the stock for its lowest close since February, though the $7 area could act as a floor like it did last month. Right now there's just one analyst in coverage, and their 12-month price target is all the way up at $18. ETON stock briefly topped the $10 level in intraday trading back in mid-May.

Capricor Therapeutics Stock More Than Doubles

CAPR is going the other direction today, surging 153% to trade at $8.15. The company announced positive results for its treatment for Duchenne Muscular Dystrophy (DMD) in a mid-stage trial. The huge move higher puts the shares above the 200-day moving average for the first time in over a year, with Capricor now in positive territory for 2019. This time last year, however, the equity was near the $16 mark, which is still below the average analyst price target of $35.

Bear Note Pressures Shotspotter

SSTI shares have moved south out of their recent consolidation area, dropping 8.6% today to $39.47. Pressuring the stock is a note out of Northland Capital, which downgraded Shotspotter to "market perform" and cut its price target to $47 from $60. Northland wrote that it's concerned about potential churn in SSTI's customer base. Today's price action also puts the security below recent support from the 320-day moving average.

As for sentiment data for the stock, 70% of brokerage firms recommend buying it, and the average 12-month price target is $52.88. On the other hand, short interest keeps building, with more than 29% of the float held by short sellers at the moment.

 

 

The shares of Domino's Pizza, Inc. (NYSE:DPZ) are trading down 6.6% before the opening bell after the company reported weak second-quarter revenue and same-store sales. If the price action holds, this would put DPZ near the $253 area, right near the year-to-date breakeven level. The move would have them far south of a recent consolidation pattern, and below the 200-day moving average, a trendline the shares haven't close beneath in months.

Technical traders may also want to take note of the $240 region, which served as a floor during the stock's post-earnings bear gap from February. It would seem some bears already got a jump on the sell-off, since DPZ fell 4.3% yesterday.

Speaking of yesterday's trading, there was also heavy action at the July 250 and 260 puts, which now own the no. 1 and no. 3 spots on the security's top open interest positions list, and have helped drive DPZ's Schaeffer's put/call open interest ratio (SOIR) to a put-skewed 1.35. On the call side, the July 310 strike is most popular, where 1,461 contracts reside.

We'll be on the watch for reactions out of the analyst community, even though there haven't been any yet. Right now, most covering analysts have bullish ratings in place, with nine "buy" or "strong buy" recommendations on the books, compared to four "holds" and not a single "sell" rating. 

B. Riley FBR downgraded Adamis Pharmaceuticals Corp (NASDAQ:ADMP) to "sell" from "neutral," and lowered its price target to $1.10 from $1.90 -- a 25% discount to last night's close. In reaction, the penny stock has plunged 4.1% out of the gate to trade at $1.40.

It's already been a tough stretch for the shares of the EpiPen rival, which were down almost 64% year-over-year heading into today's trading. More recently, the stock's rebound off its July 2 record low of $1.20 was quickly contained by familiar resistance at its descending 50-day moving average.

Nevertheless, the majority of the analysts in coverage still maintain a "buy" or better rating on the biopharmaceutical name. Plus, the average 12-month price target sits all the way up at $171.92. More bear notes could be in store for the underperformer.

Elsewhere on the sentiment front, short sellers have been increasing their exposure to the struggling stock. Year-to-date, short interest on ADMP is up 13.4% to 4.08 million shares. This accounts for a healthy 8.7% of the security's available float, or 12.9 times the average daily pace of trading. These bears are sidelined today, though, with the equity on the short-sale restricted list.

One of the worst stocks on the New York Stock Exchange (NYSE) today is Fiat Chrysler Automobiles NV (NYSE:FCAU), down 4.3% to trade at $13.56, after Goldman Sachs weighed in the European automakers, initiating coverage on FCAU with a "sell" rating. The analyst in coverage sees near-term challenges for earnings growth in North America, as well as other headwinds such as trade tensions, Brexit, and carbon dioxide (CO2) emissions targets. 

Today's pullback interrupts what was a nice run on the charts for FCAU this summer. Since bottoming at $12.58 on May 31 amid auto tariff tensions, the shares had added 13% through last night's close, and last week toppled their 200-day moving average. While the auto stock has surrendered this trendline in early trading today, it is still holding above its year-to-date breakeven level. 

Analyst sentiment is pretty evenly skewed for a stock that has shed 23% year-over-year. Of the nine brokerages in coverage, four rate it a "buy" or better, with the other five doling out tepid "holds." As far as the average 12-month price target, it sits all the way up at $20, territory not traded at since June 2018.

In the options pits, puts are the preferred vehicle for trading. FCAU's 10-day put/call volume ratio of 2.52 on the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks in the 95th percentile of its annual range, indicating not only that puts have doubled calls in the past two weeks, but also that the rate of put buying has been much faster than usual.

Options are an intriguing route right now, because the equity has had a tendency to make bigger moves than options traders were pricing in over the past year. The stock's Schaeffer's Volatility Scorecard (SVS) sits at 98 (out of 100), which could make buying premium an even more attractive choice.