To The Moon

Finding winning auto stocks to buy is difficult this year. The world is still trying to recover from a pandemic. The global shutdowns wreaked havoc on manufacturing, and the auto sector felt it hard. As a result, auto stock investors have been shy about paying up for the stocks now. They have had success, but that ended late last year for the most part.

Today we will lay out a comprehensive list of auto stocks to buy in any market. The strategy is timeless, so it’s up to the investors to choose the appropriate time frames. Finding perfect entry levels is a tricky proposition. Most investors usually seek one moment to load up. In reality, the better method is to average into a full position at different times, preferably on dips. To make that strategy almost foolproof, we should vet each entry as a perfect one.

Currently, all equities are struggling. The U.S. Federal Reserve has embarked on a war against inflation. Since they can’t control supply, they are out to destroy demand. Investors should beware this process. Lacking courage, Wall Street is allowing everything — including auto stocks — to fall through important support levels. The good news is that this usually creates setups for future gains.

My overall conclusion for all of these auto stocks to buy on this overall dip. They all deserve to be here, but none are guaranteed to succeed. Managements need to continue to shine, else I reserve the right to demote them. Also, buying dips in general is difficult, and darn near impossible under these conditions. I would caution against going all in as if this is a bottom. We don’t know if the indices have finished correcting. Therefore, it would be foolish to completely buy into auto stocks regardless of how great they are.

Lucid (LCID)LCID stock is 75% off its highs, but that’s a good reason to start building a position now. It has started limited delivery of its cars, but it is suffering delays. For now, management will have cover on that front. They can always blame it on the chip shortages among other global delays. In the end, they will need to just promise what they can deliver and no more.

Investors have been patient with Lucid cars, but investors have not had the same patience for LCID stock. The good news is that it is near its bottom — enough to make the upside opportunity attractive. This is especially true if the time frame to hold is long. The faster scalpers of LCID stock will need help from the general markets.

It has recovered well from its May low. This is tangible improvement, especially since the indices failed to do the same. This relative out-performance could be an indication that the LCID price now is lean enough to warrant a nibble. I do not trust it enough to take a full position yet.

$Lucid Group Inc(LCID)$