2 Stocks to Load Up on During This Correction
Corrections aren’t easy for anyone. In fact, most long-term investors definitely find them annoying. They do provide opportunities for the markets to reset and stocks to come back down to reasonable valuations. You shouldn’t be watching the price of your stocks fall, you should be looking at which stocks to buy when they do fall. They say millionaires are made when the markets are red. Here are two stocks to load up on during this current correction.
Uber Technologies (NYSE: UBER)
Uber was a stock that was on fire earlier this year. The company reported its first GAAP profitable quarter and was added to the S&P 500 and the Dow Jones Transportation Index. But over the past month, shares are down by 7.5%. Why? A multitude of reasons. One reason is that after an exponential move higher, stocks naturally need to re-test previous levels of support to make a stronger chart.
Another reason is the looming announcement from Tesla (NASDAQ: TSLA) about the robotaxi it is planning to launch. CEO Elon Musk stated that the initial unveiling will take place in August. Should Uber shareholders be worried? Honestly, as much as I like Tesla as a company, I don’t think its robotaxi is going to replace Uber anytime soon. Even if Tesla unveils the robotaxi, it could be years until it is not only on the roads but regulated by governments. There is a significant percentage of the population that will never set foot in an autonomous vehicle no matter how safe they are. Just like how EVs haven’t replaced ICE vehicles, I don’t think robot-driven cars will replace human drivers.
Technically, Uber is in a good place and is going through a much-needed correction. The price has re-entered the golden pocket on the Fibonacci retracement and could rebound at any time. It could also extend lower to the 0.382 extension price of around $67.00, before continuing its rise higher. If it hits that price, I’d buy it hand over fist.
Celsius (NASDAQ: CELH)
Another popular stock from earlier in the year has been beaten down as of late. Celsius has lost nearly 20% over the past month in what has been a vicious correction for bulls. That correction could also be coming to an end if we look at the Celsius chart. Celsius is now back at its 0.382 Fibonacci retracement from its recent peak. While it could rebound from here, I’m eyeing a retrace of the 0.236 extension which also lines up with its breakout area in February. Is it a guarantee? Nothing is a guarantee, but as investors we want to give ourselves the best probability of success in the long-term.
Celsius is a stock that has gone viral this year and for good reason. Sales are growing exponentially and the company also announced expansion into Europe. With partnerships at some of the biggest retailers like Costco and Walmart, Celsius is a great story for small businesses making it big. A little more patience and the stock could be ready to rise again.
Rate this article