Tuesday was the worst day for stocks since 2020. Almost everything was down.
Major indexes fell back to a crucial support level shown below in white on the QQQ.
This has been a battleground for stocks since June, so it’s not surprising that this is where the selling finally stopped.
But this is where the rubber meets the road.
If stocks can hold here, this will be viewed as one of the best buying opportunities of the year.
If they don’t, I expect to see the market make new lows for the year.
I don’t have a crystal ball, so I cannot tell you which scenario will play out. But if it is the first, here are 3 stocks worth buying on this pullback:
Axsome Therapeutics (AXSM)
AXSM is a top biotech stock up 3-fold since June.
Shares have held the 21-day moving average (blue line on chart) for pretty much the whole move, and the recent pullback gives traders a chance to buy off this level.
Celsius Holdings (CELH)
CELH is another top-performer this year.
Momentum has stalled for the last month or so, and the stock is roughly 17% off its high at around $100 per share.
As long as CELH holds above its 50-day moving average (red line on chart), this stock is still in play.
Lantheus Holdings (LNTH)
LNTH has been an absolute monster in 2022.
Bear market? What bear market?!
Lantheus stock looks like it’s riding the dot-com bubble in the late 90s.
Shares haven’t pulled back much, but if Tuesday didn’t crush the price, you have to wonder if anything can.
A pullback to the 21-day might be all we get.
Embrace the surge,
Editor, Stock Surge Daily